Southwest Florida's Premier Real Estate
Investor & Property Management Connection.

Property Management Blog

Key Notes : The Man Holding Us Down

Web Admin - Tuesday, February 28, 2012
featured image

Key Notes : a property management newsletter.

When doing your taxes this year pay special attention to the Schedule E form for 2011. There have been several changes related to real estate investors and landlords designed to clarify funds and how the are reported.

In a recent article released by the American Apartment Owners Association, the Treasury Inspector General for Tax Administration issued a report in December 2010 recommending increased scrutiny of tax returns with rental real estate activity, estimating that the change could recover over $27 million in lost revenue over 5 years.

The audit was conducted because of a 2008 Government Accountability Office report that over half of the individual taxpayers that reported rental real estate activity misreported that activity, resulting in a shortfall of $12.4 billion in 2001 alone, according to San Francisco Bay Area tax audit experts, ProActive Tax Solutions.

The article does not clarify if this is specific to the California area, but I would assume that even if it is, the rest of the states are soon to follow.

“No matter how honest you are on your taxes, owning rental property is an automatic audit trigger since these reports were issued. Every landlord is that much more likely to be audited,” said Georgia Rogers, President of ProActive Tax Solutions.

The report from the Treasury Inspector General also recommended more careful examination of un-allowed passive losses from prior years, and of people claiming to be real estate professionals. In response, the IRS has changed the Schedule E (the form for real estate income and losses) for tax year 2011. The new forms will require more information about rentals, including the type of property, the number of days it was rented, and any days for personal use.

“These changes will require landlords to be more careful about records and bookkeeping,” according to Rogers.

I hope this helps you to just be aware that there are changes that have been made specifically for us. From what I understand, you have a better chance of getting struck by lightning. However, I think either one would be a bummer. Have a great week and payout will be done on Saturday March 10th so expect your funds by midnight Tuesday.

Source : American Apartment Owners Association


Recent Posts


Tags

Management Tax Assessment Southwest Fl Colonial Country Club Real Estate rental advertising rental Fort Myers Real estate rebound Real Estate Markets wear and tear Distressd homes sales Key Real estate advisors rent estero maintenance fees Lawn Service filing taxes Property land A/C maintenance Property management building permits Cape Coral Property management rental market real estate news Ft Myers Colonial Country Club taxes Renting Southwest Florida Air Conditioning rental tips new home construction rental income payout management fees Ft Myers properties Beaches short sales Fort Myers Real Estate Security deposit refund expenses 10017 Skyview Way Real Estate Prices Sanibel Captiva Home owners Key Real Estate american dream Landlord happy tenants Realtor tenants. real state ft myers real estate company real estate investments evicions screening process Golf tenants Home values Investor impact marketing investment oppotunities rental rates property values South Florida property management services real estate sales renters Property Mangement golf communities Lee County Property Management Air conditioning cages south ft myers real estate Estero FL Lee County Realtors investors real estate investors maintenance inspections Fort Myers Property Management Cape Coral Real Estate homes for rent Rents National Association of Realtors Property management Ft Myers investor management Key Notes investor News-Press news letter Tenant Cape Coral Selling real estate advise hurriccane landlords Market Watch real estate market Fort Myers-Cape Coral evictions Investment company Lee County Real Estate Estero rental properties security deposit sales property managent Real Estate Lehigh Acres Fighting Tax Assessment Funished Ft Myers real estate Real Estate Values Naples Condos rental properties investment properties Mortgage rates property management newsletter property managers pending sales water system maintenance. Lehigh Acres Duplexes leases Foreclosure HUD property manager Sec 8 property management company Rentals preventative maintenance Damage mortgages Bonita Springs Lehigh Acres Property management Pet Friendly landlord taxes market rent owners Luxury Apartments Collier County Pets allowed Bent Palms investments

Archive