Real estate investor and author Amanda Han shares valuable insights on deductions, depreciations, home-office write-offs, expenses, legal entities, and the importance of having a real estate friendly CPA. She emphasizes the importance of keeping track of business expenses and notifying your CPA on all real estate related matters to save money and grow your portfolio faster.
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Common Rookie Tax Deductions Missed
Rookie investors often miss common but less obvious tax deductions like subscriptions and home office expenses.
Many don't realize they can write off business expenses even without having a legal entity set up.
volunteer_activism ADVICE
Track Expenses Consistently
Track expenses using a method you will consistently use, whether QuickBooks, Excel, or paper.
Save photos of receipts digitally in a folder to avoid losing them and for audit protection.
volunteer_activism ADVICE
Hire CPA Early with Right Questions
Interview CPAs before your first property acquisition to find someone who understands real estate.
Ask detailed real estate-specific questions to gauge their expertise, not just if they have investor clients.
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Amanda Han is a familiar face to the BiggerPockets audience. She’s been featured on the BiggerPockets podcasts before and has written multiple books published by BiggerPockets (The Book on Tax Strategies for the Savvy Real Estate Investor & The Book on Advanced Tax Strategies). Amanda has worked with lots of real estate investors and invests in real estate herself, so she’s answering some common questions that rookie investors have about taxes.
We run through a mix of topics such as deductions, depreciations, home-office write-offs, expenses, legal entities, and when you should get a CPA. Amanda also talks about some of the most common deductions that rookie investors miss. She also talks through different software for tracking your business expenses, recording your mileage, and keeping your business finances up to date.
It may seem like a lot of information to keep track of, especially when you’re in the middle of a rehab/flip or even just managing your rental. Amanda stresses how important it is for you not only to find a high quality, real estate friendly CPA, but also that you keep them in the loop. If you’re thinking of buying, selling, or transferring property, it’s incredibly important to keep your CPA notified on all things related to your real estate business. That way, you keep more money in your pocket and are able to grow your portfolio even faster!
In This Episode We Cover
The most common tax mistakes that rookie investors make
The best way to track your expenses (and your different options)
When you should consider, interview, and hire a CPA
The best questions to ask a CPA if you’re interviewing them
Real Estate Rookie