A new year always brings new opportunities for Spokane investors, but it also brings another tax season. Taxes have a way of sneaking up on us, and when you’re investing and running a business, the financial preparation may tend to be overlooked. We’ve compiled a few bulletpoints and tips that real estate investors can use to ease into tax season.
Find A CPA
If you haven’t already, establish a relationship with a certified public accountant (CPA) in Spokane who is either an investor themselves or has experience working with real estate investors.
Organize Your Receipts
Compile all of your receipts from last year. Business expenses may vary from advertising costs to contractor payments. Your CPA will guide you here, as these may change yearly.
Prepare Tax-Related Documents
Collect all tax-related documents and ensure that you have them before submitting them to your chosen CPA. These tax forms can include tax-year 1099s, prior year 1040 for reference (especially if you’re using a new CPA), W-2 if you’re also working another job, etc.
If you haven’t been diligently maintaning one, now is the time to put one together. Make sure that all receipts for any deductions are included in it, as well as all income from any source. Mileage is often overlooked and can be a great deduction.
Plan For Next Year
It’s always a good idea to prepare notes for a discussion on future financial planning, such as perhaps putting some earnings into either an existing or new Roth IRA, 401(k), or other account that you might already have. It’s good to create a plan for the future with your CPA to insure your Spokane real estate investment business is in the most advantageous tax situation possible.
Ask About An Extension
Discuss with your CPA whether an extension would be advisable for you, especially if any documents, receipts, or expenses are missing. A good CPA will advise if this is advantageous or not. Keep in mind, filing for an extension doesn’t exempt you from paying taxes on time, your CPA will estimate how much you may potentially owe in taxes and send an applicable payment with your extension.
As with any tax-related topic, we always encourage you to seek the advice of a professional CPA, attorney, or financial advisor. We solely intend to provide general information. If you have any questions, feel free to give us a call at 425-385-9014 or shoot us an email. We’d love to earn your Spokane real estate financing business in 2020 and beyond!
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