Updated over 6 years ago on .
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resources for a simple method for tracking rental expenses/income
I have 4 rental properties just recently purchased. I jumped in and am just learning as I go. I know I need to get my tax "stuff" in order and develop a good system to keep track of all of this. I am a pretty meticulous person so I actually don't mind the task I just don't understand it yet. For example, as I was getting started I used $1000 of some rental income from one property to pay back a credit card that I had used to pay for living expenses while I was buying another property. So the credit card expense wasn't related to any property purchases (not directly) but I pulled the money out of one of my property accounts. I just don't know what to do with that transaction. Maybe because it wasn't a business expense that I used the money for I just ignore that transaction (in terms of tax purposes?) So...not really looking for a specific answer to that problem but it is just an example of me needing a down and dirty basic guide on the paperwork side of the rentals. I have started using STESSA but I need to learn more. Thanks all, sorry for making this such a long post!!
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Just keep in mind, you want to track your financials not only for tax purposes but for you to know what your equity is for each property.