So the numbers are in, and they’re as expected for Tax Season 2006.

My wife and I will get $1,850 back on our Federal returns, and another $550 back on our State returns.  I expected we’d get a healthy refund this year due to the fact that we ended up paying estimated taxes in 2006 due to the fact that we owed money on our 2005 taxes due to a large capital gains sale on some stock I sold.

Evidently, if you owe the government more than $1,000 in a given year, they strongly suggest that you pay estimated taxes based on your current return for the following year.  Very confusing, and why $1,000 is a magic number, I have no idea.

I am a little bit miffed about our $2,400 refund.  On one hand, it’s nice to have the extra cash, but on the other hand, it was a $2,400 interest-free loan for an entire year.

The good news is, we won’t be paying estimated taxes this year.

The total bill for our tax preparation came down to just under $700.  This may sound like  a lot, but it covers our personal returns, the oil company’s returns, and the added work of accounting for our rental property, and comprising of returns in three different states.

Also, I found out a little secret that I’d like to pass along:  Find yourself a good CPA in a sleepy little town out in the country.  Their rates are far lower, and it seems like they are more efficient.  Or maybe they are just more lax on keeping track of time?  Either way, I come out ahead.

To put it in perspective, last year the CPA we used charged $1,400 for our personal returns and the LLC.  We didn’t even have the rental property to contend with!

So, lesson learned.  Small town CPA’s are the way to go!

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