Taxes - Montana Owners Club

old turbo · 11-06-2006, 01:17 PM

We are going to TX for the winter. Wife is worrying about the taxes because we wont be back till April. I told her to just file for an extension because most W2 forms will not be here till Feb. What do most of you snowbirds do

Parrothead · 11-06-2006, 01:24 PM

Old Turbo
When I had my consulting business, I always filed for an extension. If you had your mail forwarded, you should have all the info you need and you can prepare them ahead and be ready to file. You know while you are enjoying the sun down south. I filed electronically last year and that is probably what I will do when we are full timing. Hopefully we won't have to pay much by then either.
Happy trails...................

Okie Guy · 11-06-2006, 01:41 PM

Since your talking taxes...
Do you get a tax break when you purchase an RV the way you do when you purchase a home? Some people are saying yes and others no. Just curious if anyone has been there, done that and has any acurate answer.
Thanks
Okie Phil

stiles watson · 11-06-2006, 01:47 PM

Because I am in Hong Kong and have been for part of the 2005 year and all of the 2006 year, I filed an extention. The issues were crazy in the transition. 2005 was my first year on Social Security, retirement income, foriegn income, as well as the regular Schedule C and W-2 income. I have done my own taxes for years, but this was a challenge.

The conclusion is that if a non-professional, like me, can do it, anyone can with the right software. As long as they get the money on time, the IRS is OK with the extention. If you make a miscue, the worst is a small penalty.

Mrs. CountryGuy · 11-06-2006, 02:21 PM

We have a gal that files ours, cause we had in the past some difficult situations, and cause we don't want to do them (lazy, eh??

)

We go to Texas for 3 to 4 months, and we do not want to have to return before April 15th, just cause of filing. Here is what we do:

Have all mail forwarded to us in Texas (this works best of course if you are sitting in one place, other wise, you will have to work this part out)

When we feel we have all the required forms, I scan them or copy them, mail them to her (sig required, so I know she got them). She does the nasties, mails them back to us, and we mail to the IRS and whomever else is into our pockets.

At some point the electronic filing will have to take over I suppose, as I am guessing the IRS is gonna get testy on that before too many more years pass. But, for now, this works.

Think out of the box or out of the taxes, or out of the world, but for goodness sakes, don't go back north to the stick built just to file taxes!

Have fun in Texas!

As far as deductions, check with a qualified tax preparer, we deducted interest paid, but heavens, that was years ago, and I am not sure they allow that any more. Used to be, if you could show you had spent more than 7 weeks in the unit, it would be considered a second home and whatever deductions you could get on a second home, you could get on the RV. BUT THAT WAS A LONG TIME AGO, SO CHECK WITH YOUR TAX PREPARER!!!!

Tom Gina 06 · 11-06-2006, 02:47 PM

We both used turbo tax and file electronicaly right from our sight in TX last March. Had all the paperwork with that we needed and then all W-2s,1099s and other information forwarded. Even did the kids taxes for them. Just had the returns deposited directly to our accounts. Worked very well for us.

Remember the............

faeb and genb · 11-06-2006, 02:58 PM

We go to RGV for winter but my truck & trailer plates both expire March 31 so we make sure we are home by then.
Gene

ols1932 · 11-06-2006, 03:06 PM

We file our taxes online with TaxAct (www.taxact.com). It costs us $9.95 and is guaranteed accurate (as long as we file everything). We've used this system for six years and have already begun to get ready to file by Feb 1. Really works great for us.

Orv

MAMalody · 11-06-2006, 05:52 PM

Here's how it works. The IRS allows you to have two homes and take the interest and property taxes as itemized deductions as long as you itemize. The homes must have sleeping quarters, bath facilities and kitchen...which the Monty's clearly do. There are a few other considerations but they are not relevant with the Monty as the second home. As to the tax preparation software, they all guarantee accuracy...but that is only mathematical accuracy not tax accuracy. In short, they only make your mistakes look good...and be mathematically correct. Some software has an interview function, so if you buy it it could help, as long as you understand the question they are asking. In short, my limited experience with tax software is that if you can do the return accurately with pencil and paper then the software is a good idea. If you can't, then I would recommend you consult with a local tax professional. I hope this helps.

adelmoll · 11-07-2006, 01:35 AM

I am a retired accountant and have filed our taxes on-line for at least the last 12 years. All tax related forms must be mailed by January 31st so we have our mail forwarded to us around Feb. 5th. If we haven't already received everything before that, it will be in this batch. That is when our families all send me their paperwork so I can prepare their taxes too. Piece of cake.

Mike is correct on the tax laws for deducting the interest and his idea of first doing the form yourself before using the software is a real good suggestion. If you don't understand the questions in the software, you should spend the money for a professional. You might save a lot in the long run.

Helen

richfaa · 11-07-2006, 01:58 AM

We have done our taxes on line for several years as we will this year although we will not be in Ohio. All we need are the various W-2 and 1099's etc and they can be forwarded. The camper, as described above, is deductible.Tax filing should be no problem...

Parrothead · 11-07-2006, 06:37 AM

I have used tax software (I prefer TaxCut over TurboTax, JMHO) for years - 15+. I have never had a problem and it is not difficult. I used to do all my daughters' as well and still help them. We have taken the interest deduction on the 5th wheel each year as well. The only time this wouldn't work is if you don't have enough deductions to itemize and those that are fulltiming may not. Everyone's situation is different but I highly recommend software and filing electronically. That said, I was an accountant so maybe this all seems easier to me than it would others. However, I taught my daughters to use the software and three have no accounting training.
Happy trails........................

cargary · 11-07-2006, 02:58 PM

We have our returns prepared by a professional that has done a good job for us over the active working years and we still use him in retirement. The advice we receive is well worth the fee we pay him for doing our returns.
On the question of deductions, we can only deduct the interest if we can itemize. We haven't been able to itemize for the last 3 years because the amount on deductions has increased to a level that we cannot match now that we're in retirement.
Good luck if you can acquire enough deductions to qualify to itemize.
Gary & Carole

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