Profit/loss statement and taxes for property

Profit/loss statement and taxes for property

Plumbing Contractor · Grants Pass, OR · Member since 2015 · 23 posts · 7 votes

There is a seven plex I am looking at, I asked the owners for profit/loss statement, and taxes for the last two years. They are having a hard time coming up with the last two years taxes, they say they are lumped in with other real estate they own. They also give me profit/loss statements on standard paper, it looks like they could put any numbers on the statement they want. So, my question is, can the property be lumped into other owned property and they can't really single this property out to show the taxes, or do they have to file separately, for each property.  I will wait and see what the answer is for this question before I ask the next. Thanks everyone.

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  • Joel OwensBusiness Member
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    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    10y

    Get the IRS tax transcripts and NOT what the seller wants to give you.

    Sellers can deceive buyers but when it comes to the IRS not many will take it to that level although not fool proof it can help.

    Some sellers at your unit level keep crappy records so it's part of the process to find out what the real numbers are.

  • Plumbing Contractor · Grants Pass, OR · Member since 2015 · 23 posts · 7 votes
    10y

    Thank you. So get the transcripts and then compare them to the profit/loss statement, to check the numbers?

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