When it comes to this TAX stuff ... we know just enough to be dangerous. We’re certainly no expert on rental property taxes and we strongly suggest that you get an accountant if you don't already have one.
A good accountant will charge $100 for just the schedule E. But as a rental property owner we find it’s best to have a professional prepare your entire return. Costs will vary depending on your specific situation ... but it’s well worth it.
Your federal tax return will be more complex due to the additional schedules and details required for your real estate activity, which increases the odds of making an error.
A good accountant will help you squeeze out the maximum number of tax deductions, which usually more than pays for the cost of his/her services.
You'll have access to expert tax advice whenever you need it. Setting up an LLC, gifting a property, or setting up a trust are examples of situations beyond the annual filing of taxes where your accountant will be able to provide valuable guidance.
Whether you're a seasoned investor or a rental property virgin -- we highly recommend you hire a professional tax preparer And, being in the business we're happy to introduce you to a couple of pros that can help you out.