Small business people sometimes keep track of their finances in a slipshod manner because of what is certainly an understandable, but perhaps misguided, attempt to keep government from learning very much about their business. It has been our experience, however, that landlords and property managers who keep good books and use the deductions that are available to them do much better with the IRS, and sleep much better at night than those who don't.
There are still a great many incentives built into the Internal Revenue Code designed to promote housing, and particularly low income rental housing. Consequently, if real estate investors learn the rules and take full advantage of the deductions and tax credits, they will likely pay as little tax as those who try to circumvent the law and deal in cash whenever they can.
An excuse often used for a for lack of good accounting is an inability to keep books and the cost of hiring professional help. We believe that's balderdash and would like to help you get started.
- Create a Rent Roll
- Establish a Maintenance Log
- Set up a Check Register
- Keep every bill & receipt
- Hire a Bookkeeper
- Do it Yourself
- Use a Simple Property Management Program
- Hire a Property Manager
The above topics are discussed on our members' accounting and bookkeeping page.