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Tax Time Again: Ugh!

By
Real Estate Broker/Owner with Broadpoint Properties Cal BRE #01324959

Before I begin to write the blog, I am going to do my traditional disclaimer: I am not an accountant. The purpose of this blog is for FUN and for educational purposes, and anyone facing the situations I describe should consult an accountant.

Okay . . . now that I got that off my chest, here I go.

It is tax time again, but this year I am ready. I am organized. I have all of my documentation in order. I am so confident that anyone who wants to can feel free to challenge me. Why am I finally so organized?

It has taken over 40 years to get to this point. But, thanks to Intuit, the makers of QuickBooks, and thanks to a wonderful accountant who I have worked with and who has coached me for over 15 years, I finally have all of my ducks in a row.

In the back of Gary Keller's book, The Millionaire Real Estate Agent, he lists a number of accounts or expense categories which really help the average real estate agent (like myself) to get organized. So, about 5 years ago, I bought QuickBooks and used his list of expense accounts as a starting point. I then began to manually enter every check I wrote or every receipt that I had. Bought dog food--entered it as a pet care expense. Bought pens--entered it as office supplies. Even if I paid cash for parking for a real estate related workshop, I entered in the expense. I did this for every account that we have, even the credit cards. (I later realized that I could save time by downloading the credit card charges directly into QuickBooks.)

Then, I saved all the receipts. Yes . . . all the receipts. I labeled envelopes for each of the expense accounts and threw the receipts into the envelopes. January came . . . no problem. All I had to do was print out a detailed report by account and all of my expenses were listed. In February, I sent that off to the accountant and put the box of large envelopes on a shelf in the garage. I feel good now. I feel thrilled that I did this and did not have to stay up nights fretting over it.

Now, I am just waiting for the accountant to fill me in on what I owe. Then, I probably will not feel so great.

Comments (6)

Bob Foster
Century 21 Lanthorn R. E. Ltd. Belleville, Ontario - Belleville, ON

I can only dream of how good that feels. My ducks are all over the place.

Mar 31, 2009 02:21 PM
Don Sabinske
Don Sabinske, Sabinske & Associates Inc. - Zimmerman, MN
Sabinske & Associates Inc.

Well, at least you made enough money to pay taxes on!  That is a great place to be these days.  I do the same as you but didn't have to buy the book to get on track!  LOL.  A couple of nice notes from the IRS makes one sit up and take notice.  Luckily all my ducks were in the row beforehand!  Laughs on them! 

Mar 31, 2009 02:21 PM
Vickie McCartney
Maverick Realty - Owensboro, KY
Broker, Real Estate Agent Owensboro KY

Hi Melissa~ You are so wise in being organized all year.  It makes tax time a breeze!  You should be proud of yourself. 

Mar 31, 2009 02:21 PM
Joel Weihe
Realty World Alliance - Wichita, KS
Helping you to use your VA home loan benefits

Like Bob, my ducks are scattered between my house, my office, my car. *sigh*  Every year I say I'll do better.  I did at least track my mileage this year, LOL!  Congrats to you and hope you don't owe much!

Mar 31, 2009 02:48 PM
Omega Omega
Omega - Glendale, CA

He Melissa - Thanks for sharing.  I'm sure your Accountant will "protect you" and position you for more success.  Anyway, thanks again for posting and sharing with the group.

Cheers

Mar 31, 2009 03:53 PM
Andrew Haslett
Van Warren Home Inspections, NAHI CRI - Fort Knox, KY
Heartland of Kentuckynulls, Best Home Inspector

My ducks are all in my office. But, they have not been in a row for awhile.

You didn't mention tips and advice regarding estimated tax payments.

Now that tax time is over, how'd it go: balance due or refund?

Apr 29, 2009 08:50 AM