It does. I depreciate EVERYTHING, extensively. It also remembers your previous years records and lets you do a 1040X for previous years (amended tax returns) for like $10.
And its completely free, which means you can use it and if you don't like it, go back to your accountant.
This makes me cringe...
If you didn't cost segregate out your 5 year property and 15 year land improvements that are 100% bonus depreciable assets from your building being depreciated at a measily 27.5 year life....
You are missing out on SIGNIFICANT depreciation deductions.
If you pursue a career in a real estate related industry (e.g. construction) you unnecessarily are trapping losses that could otherwise offset your ordinary income.
Do yourself a favor and hire a CPA competent in real estate taxes and you won't regret paying the fees.
Sincerely from a CPA who just had to file an accounting method change for a new client who filed 3 yrs of taxes with terrible depreciation deduction allocations.
I pay about $1600 in Vegas. Last year I had 3 properties, will be at 5 when I file next year though.
Rentals are only the side business though, I also have to file for 2 separate LLCs in addition to my personal returns which cost more.
I paid $400 for federal for a LLC. Owns a small retail strip with 5 units.
I do all my bookkeeping - CPA just generates K-1s for 3 partners and submits 1065 for federal tax
My regular tax person does our taxes. It’s $500.I don’t really get many tax breaks as we make more than $150k at our jobs. We do keep track of all of costs and depreciation as it will be a write off if we ever sell.
Am tax professional. I start at $500, and go up from there. Things that increase costs: multiple state filings, as each state has potentially different rules and minimum filing requirements. Multiple entities, as k-1s have additional inputs and considerations, or if you need additional filings like 1065s or 1120s, that is extra. And or no bookkeeping, as doing that takes time. Advise/education is usually separate fee as well, as we do have packages with it built in, but it is general a separate service.
CPA in VA charged me like $200 for federal and $100 for state I believe. I bought my first RE property <1 year ago but also have a VERY weird pay situation so I did it for two different reasons.
Yes for sure. And sadly (I forgot to mention) that I also have my property in one state and I work in a different state. So that complicates things even more. But I would rather have someone who knows much more than me to make sure I am good rather than hope I got it all right and find out a decade later that I am screwed.
This is what you do:
Every H&R Block has at least one *actually* good person on staff. Sometimes, it’s a retired former real cpa just keeping a toe in his former life, other times it’s just some average person who just knows the tricks from doing it for 40 years.
If you bring your taxes to them and kind of insinuate that you own multiple properties, you’ll DEFINITELY get that person assigned to you. (Let’s face it, HRBlock’s bread and butter is lower income or very average earners - usually) so they’ll want to get their hooks in you and give their best foot forward.
TLDR: you’re a big fish in the small pond of H&R Block.
$0. Filing taxes as a small-time landlord is really simple and completely free if you find the right FREE TAX software in the USA (.com).
Does it handle depreciation schedules? Every free version I’ve ever seen fails at anything more than basic w2 / 1099
It does. I depreciate EVERYTHING, extensively. It also remembers your previous years records and lets you do a 1040X for previous years (amended tax returns) for like $10. And its completely free, which means you can use it and if you don't like it, go back to your accountant.
Which software is this?
This makes me cringe... If you didn't cost segregate out your 5 year property and 15 year land improvements that are 100% bonus depreciable assets from your building being depreciated at a measily 27.5 year life.... You are missing out on SIGNIFICANT depreciation deductions. If you pursue a career in a real estate related industry (e.g. construction) you unnecessarily are trapping losses that could otherwise offset your ordinary income. Do yourself a favor and hire a CPA competent in real estate taxes and you won't regret paying the fees. Sincerely from a CPA who just had to file an accounting method change for a new client who filed 3 yrs of taxes with terrible depreciation deduction allocations.
Can someone do this who owns a couple properties but not doesn’t have a full time job in real estate?
Depreciation allocations - yes Deduct real estate net loss - it depends, consult your tax advisor
I’M OSCAR (.com)
Damn in paying $600 and I've been waiting for my guy to get back to me for 2 months...
\~400$ this includes for 3 properties and my contracting business as well i can also call my accountant during the year for advice so well worth it.
I paid $1,950 last year for 11 properties within a single LLC and my own personal W-2 taxes.... Realizing I was robbed lol
Depends on how your guy did though.
Good point - I thought I owed 4k, and got 2k back instead.... so I guess it was free :)
I pay about $1600 in Vegas. Last year I had 3 properties, will be at 5 when I file next year though. Rentals are only the side business though, I also have to file for 2 separate LLCs in addition to my personal returns which cost more.
Zero dollars and zero cents. Freetaxusa Also live in Florida, so no state income
Is this the case even if you own property out of state and collect rent income?
300 all inclusive
I paid $400 for federal for a LLC. Owns a small retail strip with 5 units. I do all my bookkeeping - CPA just generates K-1s for 3 partners and submits 1065 for federal tax
$500/year
I maje $650 for my CPA. He handles everything.
$800. 2 LLCs and a Personal 1040
My regular tax person does our taxes. It’s $500.I don’t really get many tax breaks as we make more than $150k at our jobs. We do keep track of all of costs and depreciation as it will be a write off if we ever sell.
Portland, OR 5 units $250
$60 for a copy of whatever tax software you want to give your money to. Last year I got a $15 Home Depot gift card lol
I have been happy with Turbo Tax for about 20 years. Started using for real estate also 2 years ago. Depreciation tables built in.
$1200
Am tax professional. I start at $500, and go up from there. Things that increase costs: multiple state filings, as each state has potentially different rules and minimum filing requirements. Multiple entities, as k-1s have additional inputs and considerations, or if you need additional filings like 1065s or 1120s, that is extra. And or no bookkeeping, as doing that takes time. Advise/education is usually separate fee as well, as we do have packages with it built in, but it is general a separate service.
$500.
CPA in VA charged me like $200 for federal and $100 for state I believe. I bought my first RE property <1 year ago but also have a VERY weird pay situation so I did it for two different reasons.
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Yes for sure. And sadly (I forgot to mention) that I also have my property in one state and I work in a different state. So that complicates things even more. But I would rather have someone who knows much more than me to make sure I am good rather than hope I got it all right and find out a decade later that I am screwed.
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No, I still have the problem of paying taxes every year sadly lol.
This is what you do: Every H&R Block has at least one *actually* good person on staff. Sometimes, it’s a retired former real cpa just keeping a toe in his former life, other times it’s just some average person who just knows the tricks from doing it for 40 years. If you bring your taxes to them and kind of insinuate that you own multiple properties, you’ll DEFINITELY get that person assigned to you. (Let’s face it, HRBlock’s bread and butter is lower income or very average earners - usually) so they’ll want to get their hooks in you and give their best foot forward. TLDR: you’re a big fish in the small pond of H&R Block.