Updated almost 9 years ago on . Most recent reply
accounting and tax basics for one rental property in my LLC
Last December I bought my second rental property and have deeded it over to my LLC which I set up for this purpose.
It has been cash flowing very well every month, so I'm thinking I'll have to pay income tax on the profits. Until now, I've been doing my own federal and state income tax returns through TurboTax.
I'm wondering about the basics of accounting and tax for this -- wondering what I don't know, that I don't know about it.
Do you have any tips or advice? Is it worth it at this point to hire an accountant? Or is it just an IRS form or two that are built into TurboTax that will flow the income through to increase my taxable income from my day job, no big deal?
Most Popular Reply
@Seth Nowak My opinion is that it depends on:
1) Your knowledge of the tax code
2) Your ability to be attentive to details
3) Your risk tolerance.
Preparing your own return can certainly be cost effective and a good way to become more familiar with IRS rules and regulations. But obviously you'll want to make sure you are remaining compliant without leaving money on the table. That's where a professional could be helpful.
- Daniel Hyman
