# Should I get a pro to do my taxes?



## crgf1k (Aug 8, 2015)

I've done my taxes myself using tax chopper online in the past many times with no problems. This year is a bit more complicated, but I'd hate to pay someone $200 just to get the same result I got (I have to pay about $23k).

In 2017 I cashed out a company pension, took a severance and retired early. The maximum pension amount went to my LIRA, the rest I took in cash. I took half of the severance in 2017 and the other half in Jan 2018. My RRSP is maxed out. I sold some securities in an un-registered account, so I entered every transaction in the capital gains/losses sheet (because they were bought years earlier, then moved to another institution so the T5008 didn't have the costs on it). I had some capital gains, and I found an "Unapplied Personal Property Loss" on my CRA Account page online, so I applied that on the "Unapplied Net Capital Losses of Other Years" page to offset my capital gains. The rest is all the usual stuff I'm used to doing on a return (T4, T4A, a bunch of T3s & T5s, RRSP contrib, advisor fees, property taxes, etc). 

Now that I've done it I feel like it was straight forward using Tax Chopper, but I've got a little self doubt wondering if an accountant could work some magic here. Is there anything here that an accountant should look at, or should I just file it?


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## pwm (Jan 19, 2012)

The way you have described all the details tells me that you have a complete understanding of your situation and are experienced at filing your own tax return. I wouldn't waste my money on an accountant, but only you know what's best for you.


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## can_84 (Jul 2, 2011)

pwm said:


> The way you have described all the details tells me that you have a complete understanding of your situation and are experienced at filing your own tax return. I wouldn't waste my money on an accountant, but only you know what's best for you.


I would consider the cost of a CPA Tax Accountant Vs. you doing it on your own. 

You can split 50% of your company pension with a spouse or comm law partner (given they are in a lower tax bracket) .. you can also slow down your withdraws if you elect to use your spouses age (given they are younger) in calculating mandatory withdrawals..... another tax planning suggestion would be to time your withdraws to minimize your taxes and put them back into a TFSA if you dont need the funds.


(These are just my opinions expressed here as I am not your adviser nor do I know your full situation)


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## ian (Jun 18, 2016)

I have done both. A number of years ago we had our tax reviewed by a CA. This was prompted by a CRA inquiry. We were close to retirement. She reviewed our taxes going back five or six years and we refiled. I had been a little sloppy to my own detriment. 
The tax refunds exceeded her fees by a factor of 3. Plus we had the satisfaction of knowing there would be no 'knock on our door' from CRA after retirement. We had some unique tax issues so ours was slightly more complicated that the average persons.

BUT...one of the real benefits was the tax planning going forward. Over the past five years of so the changes she suggested have made a significant difference on our tax paid. Our situation has become more static and we have used Studio Tax for the past two years. This years was interesting because the optimizer calculated the amount of pension transfer to my spouse in order to eliminate OAS clawbacks. I like Studio Tax because we download it and then upload the return to CRA.


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## twa2w (Mar 5, 2016)

can_84 said:


> I would consider the cost of a CPA Tax Accountant Vs. you doing it on your own.
> 
> You can split 50% of your company pension with a spouse or comm law partner (given they are in a lower tax bracket) .. you can also slow down your withdraws if you elect to use your spouses age (given they are younger) in calculating mandatory withdrawals..... another tax planning suggestion would be to time your withdraws to minimize your taxes and put them back into a TFSA if you dont need the funds.
> 
> ...


While normally a pension can be split with a spouse, the OP states they cashed out their pension and this cannot be split with a spouse. Once the poster converts from LIRA to LIF, and is over 65, it is eligible to be split.

Some of that severance may have been eligible to roll over into the RSP ( without affecting contribution room) but it is too late now.


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## kcowan (Jul 1, 2010)

When I took over accounting and filing for DWs business, I discovered that many expenses and deductions had been missed. Professionals can only deal with what they are given.


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## crgf1k (Aug 8, 2015)

Well I'm 44 and single so there's no spouse or common law to split anything with, and I'm only going to be withdrawing about $11-12k total per year to live on going forward, so maybe the tax strategy isn't going to be very important? I had an accountant do my taxes last year because I was closing out a small business, so I'd say all loose ends were tied up then.


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## crgf1k (Aug 8, 2015)

twa2w said:


> While normally a pension can be split with a spouse, the OP states they cashed out their pension and this cannot be split with a spouse. Once the poster converts from LIRA to LIF, and is over 65, it is eligible to be split.
> 
> Some of that severance may have been eligible to roll over into the RSP ( without affecting contribution room) but it is too late now.


I think I looked into that. I started working there in 2007, and I think what you're referring to only applies to pre 1989 and pre 1996. There was also a Pension Adjustment Reversal calculation done, and there was no room there either.


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## lonewolf :) (Sep 13, 2016)

If you have a friend that knows how to do taxes you could offer to do some type of work for them that they need doing in exchange i.e., cut grass, clean their house or what ever


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## crgf1k (Aug 8, 2015)

lonewolf :) said:


> If you have a friend that knows how to do taxes you could offer to do some type of work for them that they need doing in exchange i.e., cut grass, clean their house or what ever


No I don't know anyone who knows how. I'm starting to think I know how but I don't give myself enough credit haha.


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## birdman (Feb 12, 2013)

For 280.00 my accountant does returns for my wife and I and answers any questions I may have. Always have a few things such as interest income without slips, capital losses or gains, special assessment on rental condo, etc. He also did a report for me for $200.00 outlining the best account to place cash and non cash investments in and withdraw from for income. It worked out to be leave RIF's for fixed income and stock investments in cash account and TFSA. Saves about $3000.00 PA in our case.


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## ian (Jun 18, 2016)

Everyone's situation is different. I am happy to pay for good professional advice when I need it. Our accountant, a CPA, provided some excellent guidance that saved us quite a bit of money. Her fees were tax deductable.


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## Yasehtor (Oct 12, 2018)

Just reading through this old post it makes me wonder why people are so reluctant to spend a few dollars to have a professional review tax issues, even if it only confirms they did it correctly. The OP calculated taxes owing of $23,000 and was hedging as to whether they should spend $200 to have a professional do the return. That is less than 1% of the taxes owing. Sounds like the OP had a good handle on the tax situation, but for a few bucks why not have it double checked?


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## Retiredguy (Jul 24, 2013)

Yasehtor said:


> Just reading through this old post it makes me wonder why people are so reluctant to spend a few dollars to have a professional review tax issues, even if it only confirms they did it correctly. The OP calculated taxes owing of $23,000 and was hedging as to whether they should spend $200 to have a professional do the return. That is less than 1% of the taxes owing. Sounds like the OP had a good handle on the tax situation, but for a few bucks why not have it double checked?


Yes an old post and poster seems knowledgeble. Reading the original post he mentions that he found "unapplied personal property loss" and applied it to capital gains. Early in the post he's talks about selling some securities and CG. So its not entirely clear what gain he applied the "unapplied personal property loss" to but it only can be applied to a personal property gain not a regular stock investment gain.

To me the post implies that he applied the loss to the securities gain but it's not conclusive. May be an accountant would have caught that?

Listed personal property (LPP) losses - Canada.ca


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