How do you do your taxes?

Question

Hey BP,

So what I do know is that uncle Sam is coming one way or another. So my question is, how do you do your taxes? On every project? Every quarter? During tax season? Or something else? Also, how much are taxes in Texas?

Steve S. · Answer

Pray

Colleen F. · Answer

Pay them quarterly or uncle sam will give you a penalty. We do them annually but that is how we are structured.

Wilson Churchill · Answer

I keep track of everything with Excel. I use TurboTax or another software program to generate the return.

BTW, a single-member LLC reports income from rentals on Schedule E, unless an election is made to treat the LLC as a C or S Corporation.

Brionne Moss · Answer

Thanks @Rodney Henson,

Just starting out, I'm going to wait until after my first flip to form my LLC. But I will surely keep records of everything as I am very organized.

Thanks @Colleen F.. Is it possible to do it on every project?

@Bryan Hancock, I do know that we don't have state income tax, so I guess the question I was really trying to ask was are the same percentages for taxes that are applied to my corporate salary applied to this business?

Thanks @Jessica B. just want to make sure that I don't make any errors.

Of course @Steve Snyder. =)

Jessica B. · Answer

I've used Turbo-tax to report my rental income for the past few years. It was pretty easy and made fewer mistakes than the CPA I hired. Well... At least I hope it made fewer mistakes.

Bryan Hancock · Answer

We file ours in April and pay in October.

Texas does not have a state income tax.  I'm assuming that is what you were asking.

Rodney Henson · Answer

Hi Brionne,

Filing your tax return depends on how you hold your properties. If you own them in your name then each property will be listed on Schedule E of your 1040. If you own them through an LLC and you are the only owner then you will report them on schedule C and the list goes on...... Please consult a tax professional for how to report your investments.

I keep accounting records on software like quickbooks or Xero and I know every month about how much my tax bill is so I make estimated tax payments monthly instead of quarterly (just easier for me that way). A good CPA will steer you in the right direction.

I hope this helps.

How do you do your taxes?

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