how to prepare for taxes? 2 properties, 4 units

Question

Seasoned pros,

I have 2 properties with duplexes on each (4 total doors). I am living in one unit in florida and renting out the rest. In the past I have just used an excel spreadsheet and annotated the rental income per month and the expenses per month. But now that I'm starting to get more properties is there a better way to do this, or should I just keep it simple and keep doing what I'm doing? Thanks for any help!

Account Closed · Answer

I am using excel.  Doesn’t seem to be an issue at the moment.  If I scale up larger I will probably move to some more organized software. But for my  size and seemingly yours it should be fine.

Basit Siddiqi · Answer

@Brad PenleyI would reach out to your accountant to see if the information you prepared for him in the past worked for him.If it worked for him and it's easy for you to do; I would continue doing the same.I think excel is an excellent way to retain information on your rental properties.Just make sure that when you record your expenses that you capture what is personal and what is a rental expense relating to the duplex that you use as a part personal residence/ part rental property.

Michael Plaks · Answer

@Brad Penley

Don't fix what ain't broken. If Excel works for you - keep it.

If it feels that it takes too much time, creates errors or your CPA wants you to use something more professional - only then switch. My 2 cents.