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Updated about 3 years ago,
- Contractor/Investor/Consultant
- West Valley Phoenix
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Accounting /Tax Question?
We moved to a new state about a year ago and bought 2 STRs as part of our retirement 'plan'. Fast forward to April 2021...I took all the pertinent info to a new Tax guy that was recommended to me. We are under an extension and now he wants more info, that's fine, no problems so far....but here's the question:
He wants separate breakdown for expenses with each STR house. I have them as a single business with one bank account and one set of books. I had assumed I could just give him the P&L /Balance Sheet and that would be good but I keep getting requests for a breakdown for each property...
I understand the need to depreciate the purchase $$ and the part of the the rehab $$ that is Capital Expense, but I'm not getting why I can't expense, for instance, floor refinishing (that occurred at both places) as a single expense. Isn't it all just income v expense like my old construction business? If I built 5 houses in a year, the money all went into one account.....there must be something I'm missing here....?