There are a lot of responsibilities to consider when you rent out a property or multiple properties for income.
To find good tenants, you’ll need to do the proper checks and security screens.
You also need to keep track of the money: rent collections, expenses and security deposits. You’ll need to provide your tenants with receipts – and you’ll need to report your income and expenses on your tax returns.
Are you making any of these common rental property bookkeeping mistakes?
- Not claiming all expenses your are entitled to
- Not reporting rental income
- Not providing proper receipts to tenants
- Not refunding security deposits within the required timelines (which could lead to a $5,000 fine)
- Not following proper procedures when deducting expenses from security deposits
If you are failing to report your rental income and expense are you paying too much in taxes? How reporting the rental income on your tax return will help you plan for your retirement.
Let Hands On Accounting look after the bookkeeping and paperwork for you
When you hire us as your bookkeeper, you know you are in good hands. We are familiar with the rules of the Tenancy and Landlord Act, so we can direct you in the proper ways to report your income and expenses for your basic rental properties.
We can help you set up proper systems for collecting payments on rentals, handling deposits and advise you of any rules you need to know as a landlord.
We always review your financial statements to ensure accuracy and to detect additional tax benefits.
For more information about how Hands On Accounting can help you with your rental property bookkeeping and/or tax returns, contact Ina today.