Business expenses
My husband expects to earn a significant amount of money preparing some complicated tax returns, but our joint account won't see a dime of it: Every penny is going toward the Continuing Professional Education courses that the State of New York requires him to take in order to maintain his license as a Certified Public Accountant. Lawyers and many members of the health-care professions must also take CPE courses. The cost of being a member of certain professions goes well beyond college tuition. Too bad for our budget. :(
posted by Shira Salamone at 10:24 AM
8 Comments:
As one self-employed professional to another, Punster must not be charging enough. If "complicated returns" only yield enough to cover CPE, then either they are not complicated, or he's way undercharging. And I understand that your definition of "significant" and mine might differ.
Thanks, Steve. My husband won't listen to my or our son's complaints about him undercharging, but maybe he'll listen to another self-employed professional.
Steve, showing your comment to my husband was worth a try. But he's convinced that he's charging what the market will bear. I guess we're living in the wrong market. :(
Like I said, your definition of "significant" and mine may be different. I like to think of "significant" as not less than at least one monthly day-school tuition payment.
Shira,
Down here, most CPAs get their CPEs in silly ways. Firms have regular meetings with a presentation for an hour, giving everyone credit. You can go to a Major League Baseball game, and they have a CPE program an hour earlier, etc., etc. While that may be a costly manner, going to a ball game isn't exactly nothing, it's partially entertainment.
He might be charging what the market will bear, but if he is spending time doing this, and you aren't seeing any money for the practice, than it's time to shut the practice down.
Caveat with this, if he does work that will become estate work. If he is break even doing tax work, but gets the executor payment when the clients die, that might be worthwhile, in which case it's deferred compensation.
But there is no reason to work a side job doing tax work and not making any money out of it. However, if his day job depends on his CPA, and his tax worth pays to maintain it, than your bank account DOES see it, because otherwise his CPE costs would come out of pocket.
Good luck.
"I like to think of "significant" as not less than at least one monthly day-school tuition payment."
TOTJ Steve, never having had the privilege of sending our then-special-ed-student son to day school, I'm not sure that 4 CPE courses would be a rough equivalent. Mind you, we're only speaking of what my husband expects to earn over roughly the next 2-4 months, not what he already earned this year prior to this month.
"However, if his day job depends on his CPA . . . "
Miami Al, the Punster's opinion seems to be that it would be difficult, at best, to teach accounting without having a practice or job in that field.
There are lots of low cost CPE courses available. He can email me if he needs links. He is really, really wrong about the market. Prices are also about to go up because of new IRS rules.
Emuna is needed. I will be happy to mail some audio CDs to you.
May you be blessed with health, prosperity, and joy!!
Eliyahu, thanks! I'll suggest to my husband that he e-mail you concerning those links to low-cost CPE courses.
"Prices are also about to go up because of new IRS rules."
Rumor has it that my husband the former auditor--and every other tax preparer--is now going to be subject to an audit. I assume that that means that even more record-keeping and/or paperwork will be required. I certainly hope that my husband's clients don't expect to pay the same fees when my husband's doing more work.
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