Triumphrat

Thruxcapacitor

I own a two family home. This year i rented the other apartment for the first time but i have not been keeping records of all the possible exemptions that im entitled to. I feel like im pulling numbers out of my a** to fill in the blanks. Whats my best course of action ? Get an accountant? Wing it and hope the IRS doesn't come knocking?

I have a ball park of what my expenditures were but not much in the way of proof if im audited. Any input would be much appreciated.

HiDesert

Get professional advice. Not advice from a motorcycle forum.

Now, that will be $25,000 for life counseling.

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I won't stop riding because you tell me about someone who died in an accident, just as I won't stop eating because someone died of e.coli.

HiDesert's ride photos

Thruxcapacitor

the check is in the mail....

It may be a motorcycle forum but a highly intellectual and intelligent one at times. Just throwing the ? out there in-case someone else has had experience with this.

HiDesert

True, we've got some pretty bright bulbs around here. Just keep in mind, caveat emptor. No, I guess poster beware is more accurate.

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I won't stop riding because you tell me about someone who died in an accident, just as I won't stop eating because someone died of e.coli.

HiDesert's ride photos

oldsprint03

I make out an Excel spreadsheet on January 2 of each new year, and plug in what I spend on what from that day forward. At the end of the year, I save all of my receipts for the year in file folder thingy I get at Staples.

At the end of the year, I give my accountant my spreadsheet containing all of my expenses, and he does the math....... and the 29 pages of documents. When that is done, I place my file folder thingy in the closet and start the process over again.

I haven't done my own taxes since 1978, my last year of active duty in the Marine Corps.......where I made a whopping $8K. Doing taxes makes my head hurt. Sure wish they would just give us a flat tax.....with a resonable rate of course.


oldsprint03

Breezer

H/D wants $25,000 for his advice? well My advice will only cost you $20,000. Free enterprise--got to love it.

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Ever stop to think.....and forget to start again?

oldsprint03

Amen Breezer, Amen.

oldsprint03

dogtired

25,000 for a HD, sounds about right.

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Can a storm be officially designated as a tornado without touching down at a trailer park?

Tbirdnz

I do the same as OS, Excel spreadsheet which I keep ongoing thru-out the year, keep all the receipts and hand it in to my accountant at the end of the year. I also have farm expenditure which I definitely need an accountant for but if I just had a flat the tax returns here are reasonably simple and I wouldn't bother with an accountant for a single rental home.

However as I understand it the US IRS is not a simple system so I would say at least for the first year either employ an accountant and get some advice then see the results and see if you can manage by yourself the second and subsequent years.

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Ride on !

Thruxcapacitor

Thanks guys, i had a momentary panic attack when i realized i had not been diligent with my rental expenses. I am getting a handle on things now. Missing out of some deductions is a painful reminder of what i should be doing. I did pay a bit extra for some tax prep from a tax adviser , but i'll only do that for this year, easy enough now that i have a plan.