Tax Season is upon us
I currently live in and own a three unit building in Chicago. With the rental income I still pay a few hundred dollars a month toward the mortgage/taxes/insurance. Looking for advice when it comes to filing my taxes. Do I need to file the rent I receive each month as earned income? Trying to figure out if I need to report the rent I receive.
Looking for advice from any Owner/Occupied investor in similar situations.
I typically use Turbo Tax, but I am not opposed to using an accountant if anyone has recommendations.
Most Popular Reply
I'm in a very similar situation with one W2 and a sole-proprietorship to file as well. Most will tell you to use a tax professional for this, but TurboTax Home and Business has the capabilities of adding rental property income and the relevant deductions. The software will help you deduct property taxes, interest, depreciation, etc. based on the percentage you rent out to your tenants as well.
The way I see it is, while your taxes are relatively basic, you own one or two properties, and you have more time than money this is something you could tackle yourself. Most of the work is in collecting up all of the documents and receipts to make sure you're filing an accurate return. Once your situation becomes the inverse it would be helpful to have someone prepare them for you.
Best of luck!