First time Rental homeowner doing taxes

Bend, Oregon
House Hacking
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First time Rental homeowner doing taxes

Matthew Mclean
Member since 2024 · 10 posts · 2 votes

Hi everyone! I bought a house this year and I’m worried doing taxes. Where do y’all start? I obviously want to pay the lowest taxes over time. How do you write things off? Where do I start?

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Basit SiddiqiBusiness Member
Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
1y

Most things in relation to the rental are deductible - Mortgage Interest, Taxes, Insurance, Repairs, etc

If you are unsure of what is deductible, you may want to consider working with an accountant.

[email protected]917-280-8544
Basit Siddiqi CPA4.880 Reviews
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  • Brandon Croucier
    Lender · Lake Havasu City, AZ · Member since 2024 · 700 posts · 285 votes
    1y

    Call up a good CPA & they will help you out

    0Reply
  • Matthew Mclean
    OP
    Member since 2024 · 10 posts · 2 votes
    1y

    How much would that cost?

    0Reply
  • Fulton Abraham Sanchez
    CPA| New Clients Welcome| 50 States · Member since 2016 · 440 posts · 97 votes
    1y

    Hi @Matthew Mclean, feel free to reach out via email to any of the real estate-savvy CPAs here on BiggerPockets. Many of us work with real estate investors across multiple states and can help guide you in the right direction. Best of luck!

    0Reply
  • Blake McWilliamsBusiness Member
    Realtor · Effingham, IL · Member since 2021 · 57 posts · 33 votes
    1y

    Hi Matthew!  The US Tax code is too much knowledge for anyone to digest completely.  Even as someone who owns multiple rentals I still heavily rely on tax strategist and CPAs.  Trying to understand taxes yourself can be quite the heavy burden.  Use the professionals and ask a lot of questions.  

    Cheers!

    618-508-1808
    RE/MAX Key Advantage4.427 Reviews
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  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    1y

    Most things in relation to the rental are deductible - Mortgage Interest, Taxes, Insurance, Repairs, etc

    If you are unsure of what is deductible, you may want to consider working with an accountant.

    [email protected]917-280-8544
    Basit Siddiqi CPA4.880 Reviews
    View Page
    1Reply
  • Alecia LovelessPro Member
    Member since 2019 · 3k+ posts · 2k+ votes
    1y

    @Matthew Mclean I use an accountant my spouse uses TurboTax.

    If you just have one rental you can probably get by with generic tax filing software. It should give you prompts to put in mortgage interest, repairs, big CapEx, and other things.

    You will likely miss some deductions using the commercial tax software but it’s the cheaper option and starting out a couple hundred dollars in deductions missed likely isn’t that big of a deal.

    If you decide to go the accountant/CPA route be sure to ask up front how much it will cost.

    I’ve used H&R Block for 30

    Years. I had the owner of my local branch doing mine. Block charges for every form you have to input. So 2 W-2s, two charges. 3 P&Ls from different properties, 3 charges. 4 inputs for interest bearing accounts, 4 charges.

    This adds up very fast. My guy used to lower my charges because he was the owner and thought all my inputs were ridiculous. Now he has sold the company and is more of a flat rate charge based loosely on how long it takes him to prepare the return.

    So just ask how you’ll be charged.

    0Reply
  • Bill HamptonBusiness Member
    Accredited Investment Fiduciary, AIF®, Financial Planner, Tax Strategist, Real Estate Investor · Atlanta, GA · Member since 2012 · 2k+ posts · 979 votes
    1y

    @Matthew Mclean

    Bigger Pockets is a great place to find an accountant specializing in real estate taxation.

    A good real estate accountant can save you thousands of dollars by leveraging entity selection and formation, tax deductions, cost segregations, bonus depreciation and tax planning.

    I recommend finding an accountant specializing in real estate taxation, business taxation, financial planning and tax planning.

    Consider working with your accountant remotely to expand your options.

    I would also recommend looking for an accountant willing to work with you throughout the year. You want an accountant who can help you strategize and who is responsive when you want to know the consequences of the financial decisions you are making throughout the year.

    Good luck.

    404-482-3170
    Hampton Tax and Financial Services LLC4.7106 Reviews
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