5 CLEVER WAYS INVESTORS CAN SAVE ON TAXES AFTER THE YEAR HAS ENDED While the final days of the year might be behind us, there are still proactive steps you can take to minimize your tax liability for 2023. In fact, there are some strategies that can still help you to save a significant amount in taxes this April. The Bad “B” Word: Bookkeeping #1
We all love to talk about tax savings, but it is important to understand that bookkeeping is the unsung hero of tax planning. Saving on taxes starts with having good books and records. Making $10,000 in rental income versus making $30,000 in rental income could require very different types of tax strategies. As an apartment investor, it's critical to maintain accurate comprehensive records. Property management software will track all our property expenses like interest, taxes, and repairs. But often missed are overhead expenses that are not property specific, such as home office deductions, business use of a car, real estate conferences and subscriptions. Effective bookkeeping ensures that you capture
every possible deduction. This practice is not just about compliance; it's about gaining a clear view of your financial landscape, which supports better decision-making and strategic planning. If you are not tracking all these direct and overhead expenses, now is the time to look at some of the larger transactions to make sure you don't miss out. For example, did you take a trip last year to a real estate conference? If so, go through your bank records and make sure you have captured all those related expenses.
BOOKKEEPING IS THE UNSUNG HERO OF TAX PLANNING.
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