Landlord income taxes - tips and tricks?

Question

I'm going over tax returns for an ill relative who's a landlord and I need some advice. A CPA does their taxes for free as a personal favor but it looks like a 12 year old could have done them and I'm guessing it's cost them thousands over the years in overpaid taxes from improper filing. They have 6 units they own outright, paid 17k in property taxes last year but only have 3k shown in business expenses and seem to be paying a ridiculous amount in income tax.

Any recommendations on experienced CPAs that can file to the advantage of landlords? Anything I should be looking out for to know for sure if their CPA knows anything about doing landlord specific income taxes?

Michael Plaks · Answer

@Rebecca Ray

You generally have 3 years to fix errors on your tax returns. Some errors (depreciation) has even a longer reach.

So, as of today, it's not too late to fix 2018, 2017 and 2016 tax returns. And, if your relative filed for an extension back in April of 2016, it's not too late to fix her 2015 return as well, but only before Oct 15.

So don't wait, get good help quickly, especially since all of us are crazy busy at this time of the year.

Natalie Kolodij · Answer

Rebecca I would reach out to some of the tax pros on here. Having someone specialized look at the gives you the best shot at making sure every any any deduction is taken, and they can tell you if there's money back to be had.

It could be a matter of errors, or communication issues, not getting the right documents. You never know.

Bob Norton · Answer

Rebecca, ask prospective CPAs if they own any rental properties. Ask them how many clients they have that are landlords. Then, ask them their process for preparing tax returns. Many tax preparers simply take the information given to them and enter it in the tax return. This appears to be what happened to your relative. You want a CPA who analyzes the data they receive and asks questions about information that appears to be missing. I hope this helps.

Landlord income taxes - tips and tricks?

Landlord income taxes - tips and tricks?

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