A good year-end tax tip is to make sure you have spent all your repairs and maintenance items for the year so you can have the write-off. We start reviewing our annual repairs and maintenance budgets in September to make sure we are spending the funding by year end. Also, it’s budget time so preparing an annual budget under the supervision of your CPA/tax accountant can provide creative ways to reduce income taxes through write-offs or legitimate accounting methods. CREATE AN ANNUAL BUDGET WITH YOUR CPA
Know the Corporate Transparency Act (CTA)! The CTA takes effect on January 1 and requires business owners to report information about their business and its “beneficial owners” to the Financial Crimes and Enforcement Network (FinCEN) at the U.S. Department of Treasury. If you don’t, you can face up to 2 years in jail or $10,000 in fines. If you own real estate through an LLC or other entity, you will need to report this information to FinCEN. Get in touch with a qualified attorney to help you stay in compliance. PREP FOR THE CORPORATE TRANSPARENCY ACT
I don’t believe tax planning should be an end-of-year scramble. The end-of- year tax planning starts for me as I’m finalizing my tax return in the spring. This is because I have conversations about how the current return looks in order to plan for the following year. These days, I have bookkeeping under control, so if needed, I am saving monthly to pay the IRS. I often meet with my CPA at the end of the year to see if he has recommendations before it’s too late.
I AM SAVING MONTHLY TO PAY THE IRS.
WE START REVIEWING OUR BUDGETS IN SEPTEMBER.
IF YOU DON’T, YOU CAN FACE UP TO 2 YEARS IN JAIL.
Ted Sutton, Esq. Real Estate Attorney Sutton Law Group Connect with Ted
Margaret Stagmeier Landlord and Author Blighted: A Story of People, Politics, and an American Housing Miracle Read Margaret’s Book
Adrian Smude Author and Investor Lifestyle Real Estate Investing Lifestyle-REI.com
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