I just got around to filing my 2003 and 2004 income taxes. I didn’t make much during those years, but boy I’m paying for it. Now I know enough to know enough not to do my own tax reporting. I take my receipts, statements and stuff and plop them down on my Accountant’s desk. You know what she does? She thanks me. I think she is crazy. Just crazy.

One problem with having someone else do your income tax reporting is that they want you to pay them to do it. I have both typical and non-typical income and expenses for a micro business. My returns aren’t too complicated, but I would hate to see how long it would take for me to do them myself.

On average I am paying about $1,200 per year for my returns. The problem is the procrastination. With three years to do instead of one, I’ll be paying for these three returns and that means this month is the last month I can do substantial rehabilitation on my main business, the Sun Valley Mobile Home Community. For the rest of this year I will see most of my expenses go toward income tax compliance costs.

Note that I mentioned compliance costs, not income taxes. When all the dust settles, I rarely make enough money that I owe income taxes. I live comfortably enough, but on a very low income. The community needs a lot of repairs and maintenance and much of my cash goes to it instead of me.

If I didn’t have to report my income, I probably wouldn’t keep any records. After all, what would be the need? True, it would be easier to sell the property with good records and good accounting eases management, but I’m a procrastinator and I know I wouldn’t be keeping records if I didn’t have to.