How to Nail House Hacking Finances: Seeking a Spreadsheet for expense tracking.

[Harshraj Thakor]

I'm new to house hacking in Charlotte, NC, and could use some guidance. For those seasoned investors out there, what spreadsheets or tools do you recommend for tracking expenses, receipts, and cash flow? I want to stay on top of my finances and make sure I'm managing everything efficiently. Any suggestions or templates you've found particularly useful for a newbie especially when it comes to tracking expenses renting room-by-room basics?

[Vitaliy Volpov]

Hey @Danielle Campos,

Anything you buy for the rental, the common areas, or yard can be a deduction or an item of depreciation. You should track everything and then touch base with a CPA as to what way it should be characterized. 

Typically, things that have a shelf life of over a year are supposed to be depreciated. Depending on what they are, they can either be added to the basis of the property in which case they are depreciated over 27.5 years or they will have their own depreciation schedule. Things that don’t last longer than a year or are not “things” (eg common area electricity cost or a prorated amount of the water bill) can be deducted in the same year.

Hope this helps!

Vitaliy