by Rick Delgado
on Wednesday, February 26th, 2020 at 7:34am.
With tax season upon us, it can be daunting thinking about taxes whilst managing your rental. If you are a landlord looking at where to start in the tax process this is the guide for you! Here are some tips that can make filing your taxes a lot easier!
1.) Receipts! Receipts! Receipts!
For tax deductions it is important to make sure you have receipts to claim details of your property as an expense. Make sure you have your record of receipts, checks, and property bills in order. Make sure that the receipts are well detailed and offer a good explanation as to why they were used. Make sure you have additional proof to cover the receipts that may be a little ambiguous. A good way to keep organized it to create a filing cabinet for your receipts that are separated by category.
2.) Think About Switching Over to Digital Records
If you have been shying away from the idea of maintaining digital records of your receipts, you may want to consider! There are tons of different accounting software that you can use to make it super simple when tax season roles around. Some of these softwares are offered free or at a small cost but are one hundred percent worth your time and consideration. Any rental documents that you need to save can be stored in this software that allows you to have an easy place to find and store without having to search through paperwork.
At the end of the day different methods work best for different people. I always suggest doing your own research on what best software/methods work for you and your property.