Seeking Advice on Rental Property Tax Preparation

[Juan Antonio Villagomez]

Hello,

I purchased my first rental property last year and rented it out for 10 months. Up until now, I’ve always handled my taxes through TurboTax since I receive a W-2, making the process straightforward. However, I realize that rental property taxes come with many nuances, and I want to ensure I’m maximizing tax savings while staying compliant.

I’d love to hear recommendations on the best approach to tax preparation for my rental property. Specifically:

• Should I continue doing my taxes myself and take the time to learn rental property tax rules?
• Should I work with a specialized accountant? I received a quote in Southern California, but it requires year-round accounting at over $6,000 per year.
• Would a general tax professional be sufficient, or would I risk missing out on significant savings?

When I first bought this rental property, I wasn’t aiming to become an expert in real estate or accounting—I was simply looking for a passive investment. However, if gaining expertise in these areas is essential for long-term success, I’m open to learning.

I appreciate any insights you can share. Thank you!

[Markus Shobe]

Usually I say if I have to learn something new and it will take me a long time to understand the material I say outsource because you can spend your time working on your business. Since you only have one property at the moment you could continue doing the taxes yourself but once it becomes more trouble than its worth it is time to outsource.