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Hurry – Taxes are due Monday…

April 14, 2012

Monday the 17th is the last day for you last second tax preparers. We hire an accountant for ours each year. It’s just too many forms, deductions, depreciation schedules, etc. This is just not my expertise. I could certainly do it, but I might mess something up and I just don’t have a passion for all these details. Similar to many rehab projects – sometimes it just best to call in a professional. Besides, It’s nice to know if I get audited I will have someone in my corner. We use the same guy that has prepared my father’s taxes for the last 20+ years. He has extensive experience with rentals.

 

Having a tax preparer does not get you out of all the paperwork. I initially had this vision of just handing him a sack full of receipts. This is not the way it works. We end up consolidating all expenses, revenue, mileage, and other deductions into a spreadsheet for him. We then bring it to his house and sit at his kitchen table and walk through everything. This year I tried to keep up with all of the receipts throughout the year and log them as I went. This saved some time, but the wife and I were still up past midnight the day before we went to meet him.

I developed a worksheet a few years ago as an input for the Schedule E. My tax guy likes it and it provides us with a view of exactly how our properties are performing for the year. Attached is that document (with numbers changed). I am sure everyone has something similar, but I don’t mind sharing mine. BTW, our taxes were quite a mess this year and we had to pay a tidy sum. On the bright side my preparer is quite a bargain in my mind –  $225.

Schedule E Sample

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From → General

2 Comments
  1. Melissa permalink

    Thank you so Chuck for sharing again this has been another great article. I use a CPA throughout the year he does my monthly reconciling and taxes it just helps to keep me on track with everything (peace of mind is priceless).

    • Melissa,

      I know a few investors who use a bookkeeper throughout the year and they think its the greatest move they ever made. We may be there someday.. Thanks for your continued support,
      Chuck

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