The Best Ever CRE Show JF3516: Tax Mistakes Investors Make that Drive CPAs Crazy, and How to Avoid Them ft. Kiyoshi Simon and Amanda Han
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Apr 20, 2024 Tax experts Kiyoshi Simon and Amanda Han discuss common mistakes investors make in real estate taxes, the importance of evolving tax structures, and how to avoid driving CPAs crazy. They highlight the significance of strategic financial planning, partnering with CPAs, and the necessity of open communication for effective tax planning and business growth.
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Balance In-House and Outsourcing
- Maintain a balance between in-house bookkeeping and outsourcing high-level tasks like tax strategy to specialized CPAs.
- Use property management software reports as a starting point but ensure they are supplemented for tax compliance and investor tracking.
Evolve Your Systems Over Time
- Your tax and accounting systems must evolve as your real estate business grows.
- What worked in the past can become cumbersome and inefficient as complexity increases.
Track Supporting Documents Carefully
- Obtain detailed supporting documents like invoices for renovations and capital expenditures.
- Work with your CPA to classify expenses correctly, distinguishing between depreciable and expensable items.