First year filing taxes with rental income

Florence, SC · Member since 2020 · 8 posts · 2 votes

This is my first year filing taxes with rental income. I have receipts from all of my expenses through the year and documentation for all of my income. I’m wondering how to I organize/package everything together to turn in to my CPA?? Thanks in advance for your advice

0 Reply

17 views

2 Replies

Jump to latestLatest

Sort by

Daniel HymanBusiness Member
CPA · Milwaukee, WI · Member since 2016 · 2k+ posts · 1k+ votes
5y
If your CPA is providing the bookkeeping, ask him/her how to best send over the documents. Many of us have online portals that we use.
If you are responsible to provide the Profit & Loss statement, try to get a hold of a template for a rental property bookkeeping spreadsheet. Or, if you are a real DIY, look for accounting software.
My Online Accountant572 Reviews
Website View Page
2 Reply
Tom DegroodtPro Member
Evans, GA · Member since 2016 · 122 posts · 65 votes
5y
Kyle,
I was super excited our 1st year at all of the money I could save on taxes. Usual deductions for the rental property, plus.... $ spent setting up the business, Mileage, tools needed for the rehab, rehab costs. The home we bought needed a ton of work. Because we were hobby landlords in the past we were able to deduct education seminars..
I was so proud of myself, I sheltered $25K from W-2 wages, saving roughly $8,000 in taxes.
Sounds great right? Who doesn't want to save $8K The problem came when we went to buy the next property. The bank saw the $25K as a loss and added $2083 to my monthly debt, so my Debt-to-Income was crushed until we could file the next year.
If you are planning on growing next year and want to incur more debt make sure your accountant knows that. I would have likely seen if there were expenses I could bring forward to the next tax year and not taken such a huge loss that 1st year.
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.