Many property owners dread this time of the year because it means getting their affairs in order for the April 15 deadline.
Be aware of the most common mistakes — and resolve to learn from other’s ignorance or negligence. Instead of getting crippled with pre-tax day anxiety, why not be proactive and take ownership of your situation and lean on a partner like Property Management Inc.? Here are some insights into making your 2019 tax filing as smooth as possible.
If you want to maximize your tax savings while avoiding an audit, you’ll want to ensure you take these considerations into account:
Get your bookkeeping dialed in. As a property owner, you have the freedom to chart your own course and aren’t limited by a salary like a traditional job. On the flip side, this comes with some implications come tax time. The IRS may send you a notice if you miscalculate self-employment taxes, according to an article from The Balance Small Business. “Self-employed business owners often forget they must include a calculation and payment for self-employment taxes on their tax returns,” the article states. “Self-employment taxes are for Social Security and Medicare, the same tax employees and employers pay.”
We know how easy it is to miscalculate how much you owe on your taxes. That’s why it’s important to lean on a property management firm that keeps accurate and up-to-date records of your cash flow and expenditures. One of the distinctions of our Brand Promise at Property Management Inc. is accurate accounting. This means you can count on our team to follow through when it matters the most.
Don’t forget 1099s. Paperwork can be time-consuming and tedious, but forgoing it isn’t an option either. We can help with the filing of your 1099 forms. Related to that, our office provides Schedule E forms — tax profit and loss statements — for all of our owners’ properties. This streamlines the tax filing process for your tax preparer and ensures accuracy. All documentation for these schedules is maintained in a secure system ready for reference by your tax professional. Yes, it’s that easy!
Educate yourself. You might be an expert in real estate, but you’re likely not a tax professional — and that’s OK. But everyone could stand to carve out some time to read about any recent legislation that could impact their situation. The tax code is a living and breathing construct, so know that it’s evolving and can change to help or hinder you.
Get help. Related to the point above, you don’t have to figure it out on your own. The good news is that if you use tax preparation software or have your taxes prepared by a professional, you don’t need to lose sleep over it. A qualified professional stays abreast of new and changing regulations and can help you calculate the effect of these changes on your wallet. Plus he or she can work in tandem with you to ensure there are no bumps in the road.
Make sure you have all your documents before you file your taxes. Among the most common reasons for receiving a notice from the IRS relates to early filing without documentation. We all know what it’s like to be a property owner. Some years your properties are cash cows while other times you might have high rates of vacancy. In lean years, if you suspect you might be due a refund on your taxes, it’s understandable to want to get that refund filed as early as possible. Just make sure you have all your documentation on hand.
Investing in property is a great way to write your own ticket and enjoy untapped earning potential. However, with opportunity comes great responsibility. So, keep good records, file and keep all your forms organized, and make sure you have everything you need before you file your taxes. Keep these tips in mind and it should be smooth sailing from here!
If mounting pressure and responsibility is weighing on you, know that you don’t have to go it alone. Our property management company is well equipped to manage your property from start to finish! Our local offices offer top-of-the-line management services, allowing you to focus your time and energy on other tasks, with the assurance that the day-to-day management of your real estate properties and investments is covered.
In other words, we specialize in full-service property solutions. Our commitment to you is to offer effective communication, honesty/integrity, accurate accounting and availability of your management team. That is the PMI Brand Promise. You’re in capable hands! Contact our office today to find out more: https://www.propertymanagementinc.com/
