Episode 40: Helping Your CPA Get Ready for Tax Time

September 30, 2022 melissa Real Estate Comments Off on Episode 40: Helping Your CPA Get Ready for Tax Time

Episode 40: Helping Your CPA Get Ready for Tax Time

Our guest in today’s Real Estate Jam Podcast episode is Rhonda Reed, our personal bookkeeper, and we talk about getting your CPA ready for tax time. Rhonda is the co-founder and CEO of Bookkeeping Express while being the CPA for Shorefront Investments. It’s time to bring your tax game to the next level and avoid having to cram every tax season.

The points below are from the 40th episode of The Real Estate JAM, where we talked about helping your CPA get ready for tax time.

Tune in to the full episode on YouTube, Spotify, or Apple Podcasts.

Own Experts, Own Tax Jurisdictions

The first thing you need to remember is that what applies to Florida may not necessarily apply to other states, so check with a local expert in your tax jurisdiction. Find out what’s the one step that is required of everyone, but most people keep missing out on when it comes to handling tax requirements. You might be guilty of this too!

 

Different Strokes for Different Investors

The need to hire a CPA may differ depending on what kind of investment or transaction you are handling but what is the same for everyone is that you all need to have a CPA who knows what they are doing. This is the only way you can maximize your tax returns and tax deductibles. And they can help you make sure that you are compliant with all of your taxes.

Want to learn more? You can listen to the full episode on YouTube, Spotify, or Apple Podcasts.

 

Outline of the Episode:

  • [00:48] Today’s guest is Rhonda Reed. Rhonda is the co-founder and CEO of Bookkeeping Express while being the CPA for Shorefront Investments.
  • [05:44] What are the common questions that new real estate investors often ask a CPA?
  • [06:07] Did you know that proper and complete record keeping and documentation are required when filing your taxes? Are your papers in order?
  • [06:47] People often take their receipts and documents and then put them in a file, only to attend to them during tax time. Are you one of them?
  • [07:41] If you have your books in order and you find the need to go to a lender or private investor, it’ll be easy to show that things are in order and provide what is needed. This is why it matters that you keep things in order.
  • [08:16] Did you know that bank and credit card statements have no use when it comes to taxes? What’s important are the receipts and bills because it shows what you paid for, not just who you paid and when.
  • [10:24] When you buy a property or do any real estate transactions, always do it via a limited liability company (LLC) to protect yourself and your personal property from any mishaps.
  • [11:07] For states that do not have a personal income tax, the breakeven point is $6000. Beyond, you need to set up an LLC to avoid also having to pay a self-employment tax on top of the income tax.
  • [14:00] Bookkeeping expenses happen because you have someone doing all of the processes for you. What’s good about Bookkeeping Express is they have an auto-generated system and can help you DIY things safely. Wouldn’t you love something like that?
  • [15:02] When do you need to have a CPA? At what point in your real estate career is it wise to have one?
  • [20:47] Is there a different process for different types of real estate investors? Do you know which category you fall under?
  • [24:24] How do you create a tax plan for a potentially significant transaction at the end of the year? Do you need to, and if yes, how do you even start?
  • [26:29] Did you know that filing a tax extension is okay? There are no red flags associated with this.

 

Connect with the Real Estate JAM!