4 Tips for Preparing Your 2017 Taxes

Everyone dreads the tax deadline, but preparing and starting the process early has its benefits. Below, we’ve outlined a few helpful tips to help you prepare so you’re not running around last minute trying to get your taxes in order.

1099 Information Verification

When sending 1099s to property owners and vendors, make sure that you have their correct information. This includes their names, tax IDs and addresses that are on file. Every person who gets a 1099 must have a W-9 on file. The simplest suggestion is to require a W-9 with their first payment.

We also suggesting using technology to make your life easier. Property management software allows for one to send 1099s directly. This also makes it easier for the recipient, who can then print and have a physical form and also a digital one on file.

Look for Tax Deductions

Sometimes owners and managers miss common deductions. Deducting landlord insurance is something that all property managers must know, and other simple deductions include mileage and software expenses. Hiring a tax professional can help you determine what can and cannot be deducted. We highly suggest setting a meeting with a professional so you don’t end up missing deductions.

And be sure to keep all of your expenses, like business operations, repairs, and maintenance, on file. It will make your life easier when it comes time to prepare your taxes.

Stay Informed on Tax Law Changes

Taxes are difficult when you do not know the game rules. Be sure to keep up to date on new tax law changes prior to doing your taxes. This will help avoid any unwanted tax surprises during the process.

Let Technology Ease Your Pain

A great-integrated software system can help you with all of your daily business activities, including leases, rent collection, tax forms, and client information. Systems like these systems bring everything up in a matter of seconds, and payments can be sent and received while other business work is being conducted, allowing for efficiency and preventing problems with forms/payments being lost.

And, most importantly, when it comes times for taxes, an electronic file can be brought up and printed, a much easier (and environmentally friendly!) process than searching for and collecting physical papers.