Beginner Renter! Tax Things to know?

[Ladarius Robinson]

Hello All,

I am very new to the real estate game and I have my first renter moving in in a few days! My question is what do I need to keep track of in order to be ready for tax time? Are there any tax breaks that I can utilize for having this renter? How do you personally keep track of your tenant data? Are there any beginner friendly real estate books specifically dealing with tax that I can look into reading? I am based in Nashville TN by the way. 

Thanks! Looking forward to hearing back from you all.

[Basit Siddiqi]

There are two books I recommend on Tax

NOLO's Real Estate book on Tax.
Biggerpocket's Real Estate Book on Tax

My suggestions would be to create a new bank account just for your rental related activities. Income from your tenant should be deposited into this account. When you have expenses, they should also come from this account.
You should also create a new online folder(Google drive, apple drive, dropbox) where you can save receipts / work orders).

Getting in touch with a CPA will help you take advantage of the many tax laws that benefit real estate investors.

Best of luck!