RENTAL INCOME REPORTING MISTAKES THAT CAN PUT YOU IN HOT WATER WITH THE IRS When it comes to reporting rental usage for income tax purposes, landlords are no strangers to potential mistakes. Being aware of some of the most common mistakes when reporting rental income is essential to avoid trouble with the IRS. 9
Failure to report all rental income received Mistake #1.
One of the most common mistakes landlords make when reporting rental usage to the IRS is failing to report all rental income received. This happens when landlords only report rent from certain tenants, overlook short-term rentals, or omit income from other sources. To avoid this, landlords must remember that ALL rental income, regardless of origin or amount, must be reported on their tax returns. It is crucial to keep detailed records of all rental income received and report it accurately to the IRS to avoid potential issues.
IT IS CRUCIAL TO KEEP DETAILED RECORDS OF ALL RENTAL INCOME RECEIVED.
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