We can’t say it enough, let the experts do what they do best. If you are unsure of anything or everything involved with the ins and outs of tax filing and your rental(s), please consult and/or hire an expert. It will be well worth the money saved in improper filing tax liabilities, and the money gained from properly credited deductions…believe it. So, again, and we can’t stress it enough, HIRE AN EXPERT! You may think there’s no need, just an extra line on a tax form or an extra entry on your tax-filing software. Maybe, but with the repercussions of incorrect filing and money you walk away from by not knowing, the investment is well worth it.
It’s a given that “true” real-estate investors, have a professional tax-preparer or accountant handling their tax filing. Just because you only have the one property that your father left you as an inheritance or the property you had to rent out when your job relocated you, you too are a “true” investor and must protect your investment by making decisions as such. So, if you’re new and unsure of what you need, when you HIRE AN EXPERT, we have a list that you need to work on, ASAP to prepare for your appointment with an accountant or tax professional,
- You’ll need all receipts for any purchase relating to your property
- Also, gather all receipts/invoices for any and all work done on your property (e.g., contractors, roofers, HVAC, pest control, repairs, etc.)
- Gather all bank records, including statements and cancelled checks (This is important because you may have lost a receipt, but can account for an expense via these records.)
- Records of all fees paid (i.e., property tax, fines, etc.)
- Have complete and accurate records of the actual renter/rental: rent collected, leasing agreement, extra fines/fees levied against the renter and any legal fees incurred due to the rental (lease termination, eviction processes, etc.).
Whether you became a real-estate investor by choice or by accident, here you are. It is now incumbent upon you to make choices that will ensure the success and profitability of your investment. There are few better choices, in this venture, than maintaining complete and accurate records of EVERYTHING, and consulting experts where you’re lacking. As always, Carod Properties, real-estate experts, is here to help!
