Good Practice to Recordkeep

[Charles D. Smith]

It is important for a landlord to keep organized and concise records of all income and expenses related to their rental properties. Good records will help the landlord monitor the progress of their rental property, prepare financial statements, identify the source of receipts, track deductible expenses, prepare their tax returns, and support items reported on tax returns. Landlords must be able to substantiate certain elements of expenses to deduct them. Generally, the landlord must have documentary evidence, such as receipts, canceled checks or bills, to support their expenses. Keep track of any travel expenses that are incurred for the rental property.