First Year as a Landlord filling taxes

Tax, SDIRAs & Cost Segregation
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First Year as a Landlord filling taxes

Brunno Goncalves
Rental Property Investor · Framingham, MA · Member since 2017 · 77 posts · 10 votes

This will be my first year filling taxes as a Landlord. What should I expect or do? 

Thanks in advance for the help BP community!!!

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  • Brian Schmelzlen
    Accountant · La Mesa, CA · Member since 2017 · 477 posts · 476 votes
    7y

    Whether you are working with a tax preparer or not (I recommend that you do), the first thing you need to do is make sure that you have all of your information gathered in a presentable way.

    If you purchased the property in 2018, you will need your final settlement statement to determine the final purchase price (including closing costs) for depreciation purposes.  You will also need a property tax statement (unless you have an appraisal or something similar) to help you properly allocated the purchase price between the land and the building.

    Next you will need your financials for 2018.  That means all of your rental income and expenses.  If you used a property manager then you will have a property manager's report that will make this very simple.  If not, you will want to take the time to make sure that you are presenting your rental income and operating expenses in a clear way.

    Finally, you will need the Form 1098 showing the mortgage interest (and possibly the property taxes).  Those might not be included on the property manager's report so I am listing it separately

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  • Brunno Goncalves
    OP
    Rental Property Investor · Framingham, MA · Member since 2017 · 77 posts · 10 votes
    7y

    Thanks Brian.

    I bought a 4 family using a 203k loan, which included a $90k for construction. I will be leaving in the 4th unit once it finishes the construction this coming March. 

    As far as rents, I don't have a PM, but have created a separate account just for that, so It would be easy to have a report on the rents received.

    I have to work on the operating expenses, which I don't believe it is as organized as it should be.

    Thanks again for the help.

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  • Daniel HymanBusiness Member
    CPA · Milwaukee, WI · Member since 2016 · 2k+ posts · 1k+ votes
    7y

    @Brunno Goncalves

    Check out "Schedule E." You can google it. 

    It will give you a feel for the type of operating expenses that you should be capturing on your return.

    My Online Accountant572 Reviews
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