SFH Rental: One Excel Workbook For the Next 30 Years?

[Arjun K.]

Hello folks,

How do you track your rental property expenses for tax purposes? I recently am new to the game, and I figured I would do this at year-end closer to tax-time -- as then I would know everything that I need, and how the formulas would work etc.

But if I want to start tracking stuff today -- do you folks have a recommended template or list of ideas to track? The goal of this worksheet would be to track all income and expeneses, for tax purposes as well as for my own return calculations.

[/b]I am handy with Excel and am happy to put together a template for the entire Board to use[b].

Ideally I would have 1 worksheet for each proprety. And say I have 5 properties, that would be 5 worksheets and perhaps 1 summary output tab.

I would have separate windows folders for all back-up, e.g., a folder for each property. And then each property would have a folder for (i) closing documents, and (ii) receipts. Receips would include all expense receipts. Maybe a third folder (iii) for Mortgage, Insurance, and Taxes.

I figure the excel sheet, would need to correctly calculate the cost basis at purchase. And then track all expenses. And if any expenses are capitalized, amortize the expense over an assumed period of years. And for tax purposes, net out depreciation of the original cost basis as well.

And thus I can periodically update my Excel, and stay on track of my properties with great books/records!

Thank you!

[Emily Dixon]

You can also use quickbooks. You can create a "Class" for each property. In quickbooks you can set up your homes as assets, record depreciation, track bills and expenses, and record all your rental receipts. You are in fact running a business so why not use a simple business accounting software.