Taxes (by Alan [PA]) Mar 26, 2011 6:31 PM
Taxes (by BRAD 20,000 [IN]) Mar 26, 2011 9:45 PM
Taxes (by Robert J [CA]) Mar 26, 2011 10:24 PM
Taxes (by proofstyle [PA]) Mar 27, 2011 2:49 AM
Taxes (by ctlandlord [CT]) Mar 27, 2011 6:03 AM
Taxes (by Andrew R. [UT]) Mar 27, 2011 11:45 AM
Taxes (by Wilma [PA]) Mar 27, 2011 12:31 PM
Taxes (by Wilma [PA]) Mar 27, 2011 12:33 PM
Taxes (by Brad [IL]) Mar 27, 2011 4:36 PM
Taxes (by billy [MA]) Mar 28, 2011 7:00 AM
Taxes (by Alan [PA]) Posted on: Mar 26, 2011 6:31 PM Message:
I have been a small landlord (2 units) for quite a few years and I am just about the dumbest, least educated, most disorganized person you would ever meet regarding taxes on my rental. I keep horrible records and every year like this year I estimate my deductions to the best of my ability. Can any one give me suggestions on how to keep organized? Is there some kind of system or program I can use to input information as the year progresses so I don't have to scramble every year around this time? And.. In years past, if I made a mistake in my estimations, what kind of trouble could I get in if I were to be audited? What are my chances of being audited?
Thank You
Alan --99.19.xx.xxx |
Taxes (by BRAD 20,000 [IN]) Posted on: Mar 26, 2011 9:45 PM Message:
Get Quicken 98. Simple to use. Cheap on ebay, Amazon.
Force yourself to always:
-write a check from your desk on Quicken
-pay with credit card. Write THAT check from Quicken.
Once the transaction is entering thru the simple task of writing the check, all the info is in the computer making a month end or year end report for your tax preparer very easy. OR give them the computer file and have them make the report. Takes about a minute.
The hand written checks and cash receipts will drive you batty!
If you are estimating, you are cheating yourself. Repairs, materials add up to more than we think and you're missing good deductions.
--67.175.xx.xxx |
Taxes (by Robert J [CA]) Posted on: Mar 26, 2011 10:24 PM Message:
I have a solution for you Alan. Use the shoe box method. Label a shoe box for your duplex and put inside it all paid receipts such as: property taxes, repairs, insurance and utiltites. At the end of the year you have all of your property records in one place. --173.55.xxx.xxx |
Taxes (by proofstyle [PA]) Posted on: Mar 27, 2011 2:49 AM Message:
Checking account statements have 90 percent. --69.136.xx.xx |
Taxes (by ctlandlord [CT]) Posted on: Mar 27, 2011 6:03 AM Message:
I am going to get the new scanner that stores receipts. mine are hard to read after 6 months or so. also use the shoe box method. estimating is cheating yourself. --152.133.x.x |
Taxes (by Andrew R. [UT]) Posted on: Mar 27, 2011 11:45 AM Message:
I have audited many businesses as a state tax auditor and seen all different types of record keeping systems. For only two units I suggest NOT to use software UNLESS you want to pull daily, weekly, monthly, or quarterly reports. And because you are the only person running your business you don't need to reconcile at year end either.
Just pile your receipts by date BUT before you do, you HAVE to write on the receipt what account it's going to and what you actually bought and what it was for so that you don't have to remember at year end.
Then calculate mileage by looking at all the stores you had to drive to by looking at the receipts and use that for year end. Try not to spend too much time on a sophisticated method for a non-sophisticated two unit business!!! --97.117.xxx.xxx |
Taxes (by Wilma [PA]) Posted on: Mar 27, 2011 12:31 PM Message:
Buy double entry ledgers from Staples or where ever, one for each property.
Label one column "Expenses", one "Income".
Every time you receive rent, write up a receipt (you can get a book of them at Staples, also). Give the tenant the original (or toss it if they say not to bother). Enter the amount under "Income", then put the receipt copy in a file folder marked "Income, House _ ".
For expenses, take the receipt and enter in the ledger under "Expenses" for the proper house - there is room to briefly note what you spent the $ on. Then put the receipt in the folder marked "Expenses, House _"
You'll end the year with four folders of neatly filed receipts. Go through them in January, just in case you missed something (ie: you always pay sewer quarterly, but forgot to enter the 3rd quarter).
Now you can tally the income and the expenses for each property, do your taxes, then file it all with a copy of the Schedule E in a dated folder for each property.
Easy to do - just adopt the "do it now" philosophy for each receipt and you'll do well. --96.245.xxx.xxx |
Taxes (by Wilma [PA]) Posted on: Mar 27, 2011 12:33 PM Message:
I was assuming that the units are at separate addresses, and not the same building - hence my "House ___", which you could call "1" or "A" or whatever. Not sure how you'd handle a duplex - probably depends on how the property is taxed and utilities billed. --96.245.xxx.xxx |
Taxes (by Brad [IL]) Posted on: Mar 27, 2011 4:36 PM Message:
I do a combination of Brad_IN and Robert J. I use Quickbooks Simple Start and use that to record my income and expenses and I record them immediately. I also keep my receipts (I write the property on the receipt) and utility bills in an envelope in case I need to come back to them later. --98.212.xxx.xxx |
Taxes (by billy [MA]) Posted on: Mar 28, 2011 7:00 AM Message:
i have 5 units in 2 houses now.i pay all expenses with checks and use cks on bank statement to add up expenses at year end.i have a couple of blank acct books from local stationery store for rents.i summarize all rents there.1 book for each bldg.i do not claim a home office bcs irs considers this an audit trigger from what we hear and when i claimed it i was audited.ive been audited once in about 40 yrs.no additional assessment.i think maybe u should get an enrolled agent or cpa if u are useless in this area.some guys dont have the gift for acctg.im kind of marginal myself.if u cant prove expense with bill and ck copy they will typically not allow them.mileage is an estimate i know. --173.14.xxx.xxx |
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