Investor · Prairieville, LA · Member since 2015 · 311 posts · 424 votes
8y
I think that one bank account per property is a little extreme unless you have each property in a different LLC. Different checkbooks, accounts, debit cards is just a bit much.
You can separate expenses for each property by using QuickBooks or Excel spreadsheets, or whatever method you prefer. Assign each expense according to the IRS categories on the Schedule E, i.e. Property 1 Cleaning & Maintenance, Repairs, Utilities, etc.
Saint Louis, MO · Member since 2020 · 40 posts · 14 votes
6y
Fellow Bper's, I am bumping this thread because I am trying to figure out whether or not to open up a separate bank account for my first property. I also need to figure out the LLC vs. no LLC dilema but thats a whole different story/thread.
Do you have separate bank accounts for each individual property? If so is it smart to open up another account with a bank that you already use or would it be advantageous to use this as an opportunity to build a relationship with another bank/possible future lender? Thanks in advance for any advice, I appreciate it.
Realtor · Tampa, FL · Member since 2019 · 31 posts · 17 votes
6y
I would suggest not getting a bank account for each property. I'm digging myself out of this mess currently. Too many Lic fees, time wasted opening LLC's and at tax time you will pay taxes on each account instead of just one. There are many ways to separate each property as many have discussed already. Discuss with your CPA or accountant for the best guidance because they will be handling your accounts and taxes and maybe your book keeping.
Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
6y
@Michael Wegner Your questions are pretty much answered at length in both this thread as well as the countless similar threads already here on BP. I highly suggest using the search function and settle down for a good read. It comes down to you getting the info and make the decision for yourself as the answer to this is a preference.
@Michael Wegner Your questions are pretty much answered at length in both this thread as well as the countless similar threads already here on BP. I highly suggest using the search function and settle down for a good read. It comes down to you getting the info and make the decision for yourself as the answer to this is a preference.
Investor · Avilla, IN · Member since 2013 · 796 posts · 769 votes
6y
@Reed Emerson welcome to BP. If you’re not already familiar with the FWREIA then you should look up the FB group and join. They meet the 1st Wednesday of every month at the Mike Thomas building on Coldwater Road. @Drew Wiard started the group and it’s a phenomenal resource regardless of where you’re at in your journey. Feel free to reach to me if want more info...the group is completely free.
Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
6y
@Nicole A.
I invest locally so those expenses are few, small, and far between. But when they do come up I classify them as RE agent expenses OR I make a decision and assign to one property.
Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
6y
I do that for apartment buildings, but cannot for single family rentals. The goal is to create an efficient business. Another way to think about it - A bank account for every LLC that I have.
You should have separate accounting entries for each property.
Rental Property Investor · NY · Member since 2018 · 571 posts · 332 votes
6y
one bank account, but i keep very detailed data on every cashflow which property, date, who the counter party was, what was it for, how would it get classified for tax purposes, etc.