Confused on taxes? How does the process work?

[Fahadbin Alam]

So I'm about to close on a property and I already have a tenant. I think it's going good until I'm like wait I have to pay taxes. where do I go to pay property taxes? can I make it automatic where the state or city takes it from my checkings account? (P.S I'm 18 and I'm new to this) Should I also get a professional like a CPA?

[Bob Norton]

@Fahadbin Alam When your deed gets recorded with the county after you purchase the property, then the tax authorities will update their property tax records and mail you a tax bill at the end of the year.  If there are any outstanding property taxes on the property at the time of closing, then your closing attorney should collect those from the seller and remit them to the local authorities.

With a single rental property, your tax return should be relative simple.  However, I find that people doing their own taxes miss a lot of deductions that they are entitled to, especially with real estate.  So, you could consider finding a CPA that specializes in real estate to make sure you are saving the most on your taxes.  That way you can focus on growing your rental portfolio instead of reading and learning tax law.