So this is the first year that I think I might have a shot at reaching the coveted "RE professional" tax status. My accountant advised me to start tracking my hours, both in my "real job" and in my RE business in 2018 (which I need to start doing, now). My question is: how detailed do I need to track my hours? I would like to be as broad as possible in order to not give more detail than necessary to the tax man.
For example, today I talked to the title company for 30 minutes about a property I have under contract. I would probably just log that as 30 minutes in "Acquisition".
Can anybody share your categories that you use in your personal tracking?
An easy way that I have found quite useful in tracking hours is the app Toggl. The basics are that you say what you are doing, start the timer, and stop it when you complete the task. The app does a good job organizing various tasks and compiles hours into different forms of graphical displays. If you start a task but do not finish it, there is a "Continue" button right next to it which makes it easy to pick up where you left off. Congratulations on almost reaching the Pro status and good luck with your future endeavors!
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