All Forum Posts by: Daniel Hyman

If the property is set up as a business, then you would, I believe, be able to deduct mileage. However, it might be advantageous to capitalize the vehicle on the books and then take the depreciation expense. A good tax preparer will be able to guide you on which one is better for your situation.

I have a client who purchased a former fraternity building in the heart of Madison, Wisconsin. He converted it into separate studio apartments. He has done very well and the property continues to appreciate.

Nice look Chris!

Thanks Jason

Hi Zach. Is (Are) your investment(s) set up as its own entity or will it be filed as part of your personal return? 

I would certainly recommend a Quickbooks account. Having updated accounting records and financial statements will come in handy in a variety of scenarios.

1. Internal - Every business owner wants to know how the business is performing. Is the business making money? Are expenses too high? How much cash is in the bank? What are the liabilities? The financial statements together serve as an internal indicator of how the business is doing.
2. External - If you are applying for loan or refinancing, banks will certainly request your latest financial statements.
3. Taxes - Tax time is not the time to start scurrying around for bank statements and receipts. When it comes time to file your business tax return (or Schedule E for your personal tax return) you can rest assure that a simple download of your financial statements will likely be all that's needed for tax preparation.

Hi Everyone. I'm glad to join what seems to be a very nice and welcoming community. I already have several real estate clients and I am looking forward contributing my knowledge, as well as learning much more about the industry.

Another important component to consider is if you prefer a bookkeeper who has tax experience as well. That might mean a higher rate, but he/she might also be better equipped to give overall business and tax advice-which ends up making up for the higher rate.