As tax season approaches there are a number of items a landlord must keep track of for tax time. Keeping meticulous records of everything will make your job easier and will help with taxes. Make sure to pay particular attention of the following items and you’ll find your taxes are easier to manage.
Purchase price. It should go without saying but sometimes the obvious needs to be stated, keep track of the actual purchase price of your property including all the additional fees that come along with a purchase.
Depreciation. This is a less concrete figure to keep track of but it’s important to keep track of your depreciation throughout the year so you get the most benefit out of your taxes.
Expenses. Every expense you have associated to your buildings needs to be itemized and documented as these are key deductions come tax time. Don’t forget to include your advertising, cleaning costs, maintenance and repairs.
Rent and other fees. Rent is something most landlords know to keep track of and all the good ones keep accurate records but it’s not just the rent that needs to be taken into consideration. All fees coming in to the landlord or your property management company need to be recorded for tax season.