Real estate investor's guide for record keeping and portfolio performance tracking
Real estate investments provides more tax benefits than almost any other investment. But tax deductions for your real estate investments are only as good as the records you keep to back them up. Any deduction you forget to claim on your tax return, or lose after an IRS audit because you lack adequate records, costs you dearly. For example a $100 in unclaimed deduction costs $25 in additional federal income taxes for an average midlevel-income investor who falls in a 25% tax bracket. Read more...
How to maintain supporting documents for your real estate tax deductions?
Getting those valuable tax deductions on your real estate income necessitates proper bookkeeping of income and expenses. If you haven’t read it already check out this article on record keeping and portfolio performance tracking. You also need supporting documents to back up the records in your books. The IRS knows very well that you can claim anything in your books and on your tax returns, because you create or complete them yourself. For this reason, the IRS requires that you have documents to support the deductions you claim on your tax return. Read more...
How to determine cash flow with our real estate investment calculator?
Cash flow and cash on cash return are the two most important metrics that determine whether a
property makes a good investment or not. Finding the most accurate numbers and running them using a
real estate calculator before making your next investment is critical. The more the cash flow and
cash on cash return the better it is.
At Cashonplex we have built a real estate investment calculator that can
be used to compare properties that you have in your market and shortlist them
based on the numbers. It is free to use as many times as you like and you can save the results of
your calculator and get a sharable link to it. Read more...
Why spreadsheets aren't good for tracking rental properties?
Spreadsheets are the goto tools for landlords for accounting. The main reason they are very popular is because most landlords have some sort of spreadsheet software (e.g., Microsoft Excel, Apple Numbers, Google Sheets, etc) on their personal computers or as a cloud service accessible via modern web browsers. Spreadsheet softwares are well known from a really long time and in fact, Apple introduced the first spreadsheet software in personal computers as early as the 1980s. They require minimal training and a simple Google search for “rental property spreadsheets” shows a number of pre-built and freely downloadable spreadsheets specially made for landlords. The disadvantages of spreadsheets far outweigh the advantages they have. Read more...