Organizing Material For Taxes?
Guys
I am a first year landlord. In terms of my taxes do I have to break out maintain cost per a property? In terms of all the supplies I have bought(i.e., filters, caulk, paint,...) does all that have to be broke out per a property as well?
Thanks for the help
Merry Christmas
Whether you have to is not really the issue. It is a good idea to do so. Makes for a clearer picture of your true cash flow when you know how much a property is costing you.
Any suggestions for the best program and/or process to do this 'tedious' task for a rehabber? Thanks.
It seems to me that breaking out the cost of materials per project is a manual intensive task, regardless of which computer program you use to track your rehab expenses.
You could always just buy materials for a single property and expense the entire cost to the project. Though, not terribly cost efficient when you have multiple projects underway.
I'm also a first year rehabber but what i have been doing is charging everything I buy to a credit card that I only use for the houses. At least once a week I download all the transactions and categorize each expense. I also save the reciepts to everything in separate folders for each project. It seems to be working but I will really know once I go to do my taxes.
I download them to Microsoft Money Small Business.
I'm thinking about getting John Hyre's tax info and program. It would mean i would have to switch over to Quickbooks to do it as he recommends.
Does anyone have experience with that?