tax advice? forms and doing it on my own?

[Allthepiecesmatter]

Mustachians,

I'm new to the forum so please forgive any idiocy herein. I'm not FIRE-ed but I am aspirational and having only recently discovered the blog I have found assurance in the convergence of my philosophy (cycling, 50%+ saving, index funds etc) with MMM's.

Now to the question, I am living in the UK (though an American citizen) earning about 38kGBP annually. I have a modest portfolio here (35k spread across index funds, some stocks (yes I know, but that was before my stubble sprouted), P2P investments and savings.

In the US I don't earn any income but am seriously down-paying off modest student loans (about 7k remains). I don't have any real estate there but do have 280k in index funds/stocks, 20k with Lending Club (yeah I have faith in P2P). complicating this I have inherited about 180k from my late father's trust.

My question is, is it worth hiring a tax specialist to file on my behalf? I have been quoted just shy of 1k which I thought was high. I can't imagine that my application is too complicated? But I would like to hear what the CPAs and experienced Mustachians have to say.

Thanks for your help everyone,

Lester

[LessIsLess]

Taxes are a bit more complex when you're an expat.  A mistake could cost you more than $1k.  That said, I don't see why you cannot try to learn and do it yourself.  There are tax specific forums that you could go and ask highly technical questions.

Do you have to file state income tax return?  If you do, try to establish residency in a no income tax state so you don't have to file.  That should simplify it a bit. 

Your tax situation is simple enough that I believe you could do it yourself (with some learning curve).

[Allthepiecesmatter]

@LessIsLess , thanks for the reply. Could you recommend a specific forum for answering technical questions?

The proceeds from my father's trust are from a home sale in California. I think therefore I have to file in CA and pay state capital gains. Does that sound right?

I'm prepared for the learning curve and the pedantic part of me does enjoy working through the handbook and the relevant forms.

Cheers,

J-

[LessIsLess]

@LessIsLess , thanks for the reply. Could you recommend a specific forum for answering technical questions?

The proceeds from my father's trust are from a home sale in California. I think therefore I have to file in CA and pay state capital gains. Does that sound right?

I'm prepared for the learning curve and the pedantic part of me does enjoy working through the handbook and the relevant forms.

Cheers,

J-

Try these:  taxprotalk.com, bogleheads.org

The cost basis is "stepped up" to fair market value at death, and when the property is sold, there shouldn't be any capital gains tax.  Moreover, California doesn't appear to have an inheritance tax on property, so you may not have to pay any. 


Some links to get you started.


https://www.justanswer.com/tax/70f7g-one-inherited-property-relative-state.html
https://thelawdictionary.org/article/does-california-have-an-inheritance-tax/