Filing taxes for rental property

[Jalen De Leon]

Hello everyone!

This past summer I bought my first rental property and it’s going to be my first time filing with a property and I just had a few questions to ask:

1.) What are some things I should look out for as I hire a CPA? (Both bad and good)

2.) what documents should I provide when filing?

3.) as an out of state investor, how exactly does filing for taxes work when I reside in California but a landlord in Indiana? Are there any restrictions, certain rules I’d have to abide by since I live in a different state than my property?

4.) If I am able to make tax deductions or write offs from repairs/ maintenance items how can I do so? Would I need to put my properties under an LLC or a company name to do so or can I just come as I am?

I’m sorry if these questions may seem all over the place but any help is appreciated!

Thank you again!

[Katie Balatbat]

@Jalen De Leon

Congrats on your recent successes!  As a CA resident, you may wish to find a CPA based in CA or at least very knowledgeable about CA taxes since CA can be a bit more complicated than other states.  You'll also want to be sure that the CPA is familiar with real estate investing and has a specialty in that area.  There are several excellent CPAs across BP if you care to search.  With the out of state investing, you'll likely need to file a non-resident return in any state where you invest and earn income if they have an income tax, and may want to talk to your CPA about making estimated payments to that state.  Similarly, find someone familiar with the credit on Schedule S for CA for taxes paid to other states. Not sure where in CA you are based, but I can give you referrals in the San Diego area if you're interested, or @Nate Meeker is a great choice based in Temecula.

*this post does not create an attorney-client or CPA-client relationship.  The information contained in this post is not to be relied upon.  Readers are advised to seek professional advice.