Corporate real estate investment

Preparing for Tax Time

A new year always brings new opportunities for investors, but it also brings another tax season. Taxes have a way of sneaking up on us—and when you’re busy investing and running a business, it’s easy to lose sight of the financial preparation required during tax season. We’ve compiled a few bullet points and tips that real estate investors can use to ease into tax season.

Find A CPA

If you haven’t already, establish a relationship with a certified public accountant (CPA) who is either an investor themselves or has experience working with real estate investors.

Organize Your Receipts

Compile all of your receipts from last year. Business expenses may vary from advertising costs to contractor payments. Your CPA will guide you here, as these may change yearly.

Prepare Tax-Related Documents

Collect all tax-related documents and ensure that you have them before submitting them to your chosen CPA. These tax forms can include tax year 1099s, prior year 1040 for reference (especially if you’re using a new CPA), W-2 if you’re also working another job, etc.

Income/Expense Report

If you haven’t been diligently maintaining one, now is the time to put together an income/expense report that works for you. Make sure that all receipts for any deductions are included in it, as well as all income from any source. Mileage is often overlooked and can be a great deduction.

Plan For Next Year

It’s always a good idea to prepare notes for a discussion on future financial planning, such as perhaps putting some earnings into either an existing or new Roth IRA, 401(k), or other account that you might already have. It’s good to create a plan for the future with your CPA to ensure your real estate investment business is in the most advantageous tax situation possible.

Ask About An Extension

Discuss with your CPA whether an extension would be advisable for you, especially if any documents, receipts, or expenses are missing. A good CPA will advise if this is advantageous or not. Keep in mind, filing for an extension doesn’t exempt you from paying taxes on time, your CPA will estimate how much you may potentially owe in taxes and send an applicable payment with your extension.

Our Money’s On You™

As with any tax-related topic, we always encourage you to seek the advice of a professional CPA, attorney, or financial advisor. At CIVIC, we welcome the ability to be a great partner for you in your real estate investment goals. . If you have any questions, feel free to give us a call at 877-472-4842 or shoot us an email. We’d love to earn your real estate financing business in 2020 and beyond!

Also Check Out: Hard Money VS Conventional Financing?

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