Tax Time

 

Sorry to burst your holiday bubble, but if you have not already done so, you might want to consider getting a jump on putting your tax receipts together.

I for one, hate waiting til the last minute -April 15 (or any date close to it) to start putting my info together.  I prefer to have everything said and done no later than February end.  This way, God Forbid, if any unexpected surprises, law changes, errors or omissions, blah-blah-blah should arise, I will have enough time to possibly correct, adjust and resubmit before deadline.

As a Real Estate Professional, Independent Consultant - have you been keeping up with all of your allowable expenses for this past year ?  If not, this is the perfect time to make your resolution to keep better records of your expenditures starting January 1, 2008.  Can you believe it...that's just 5 days away, next Tuesday!

Tax Inefficient

Here are just a few typical business expenses related to Real Estate Professionals:

Auto Travel - Deductible business mileage is travel to and from:

  • Client meetings
  • Escrow
  • Lenders
  • Showings
  • Caravans
  • Continuing Education Classes
  • Business Trips

Business Mileage rates for 2007 are 48.5 cents per mile.  This rate has been increased for 2008 to 50.5 cents per mile.

Try to remember to keep receipts for all car operating expenses:

Parking meters, tolls, gas, oil, repairs, insurance, car loan interest, vehicle registration.

 

Professional Fees & Dues - Paid to organizations related to your Real Estate profession are deductible.

Document and keep track of fees paid to:

  1. Associations
  2. Chamber of Commerce
  3. Board of Realtors
  4. City/State Business License

 

Business Supplies:  Following are examples of ordinary and necessary business supplies that are generally tax deductible.

Briefcase
Stationary
Computer software and supplies
Fax supplies
Film and processing
Lock boxes, keys and locksmith
Map books
Photocopy expense
Postage, shipping and freight
Greeting Cards

Please consult with your Tax Advisor for a complete list of allowable deductions.  If you are like me, don't have a Tax Advisor, (Hubby and I do our own taxes - We are IRS Authorized E-File Providers), go directly to the source..."The IRS" for more info.

IRS Logo

With all of the expenses involved in running your own business, especially in the world of Real Estate, don't miss out on all of the legal deductions allowed by our government.

Here is another link to an article posted a few years back, "10 Easy Tax Deductions, Tax Records you can't do without".  Has great info to get you started on your goal to keeping track of your allowances for the year ahead.

Of course, the internet is a gold mine of information for you to sort through, but if you don't have the time or patience here is just one more handy dandy link which will be sure to guide you to finding your tax deductions.

 Tax Receipts

Keeping better records is a learned and practiced behavior.  It will be difficult at first, but if you are like me, every year will be a little better than the last if you stick with it.  Just consider it one of your New Year's resolutions and commit to it.  It will make your life so much easier come this time next year!

 Good Luck and I Wish Everyone A Healthy and Prosperous New Year!

 

"May Peace Be Within Your Walls and Prosperity Surround Your Properties"

Psalm 122:7

Tina Little-Coltrane, Realtor/Broker

CDI Realty, Alamance County NC
 

32 Comments on Tis The Season…..Aaargh!! It’s almost Tax Time!

20 Most Recent Comments Displayed Show All

DEC
27
2007
1,085,377 Points 75 Featured Posts Outside Blog Called Shot Master
  Just spoke with a new accountant since the last one goofed on our return...."We don't accept any new clients from January thru April'....now there's a really good marketing philosophy.....imagine where any of us would be using such a ridiculous way of doing business...it's easier of course keeping track of them all year and not doing shoeboxes in April...good luck all !
2:25pm • #13
163,598 Points

Great tips!  When I have an expense, I enter it into Quicken at the time the expense occurs and file the receipt. Then at the end of the year all I have to do is print it out and give it to my CPA. It makes tax prep a piece of cake.

Rob Proctor   www.at-home-realtors.com
2:31pm • #14
Thanks. I was actually organizing my 2007 expenses last night. Got mostly finished. I feel much better now. Thanks also for the good links.
3:00pm • #15
6 Featured Posts Outside Blog
thank you thank you thank you....im gathering things up now. my son threw away a whole container of receipts, i could've died. thank god, i live in a cashless world,lol my bank statements are saving my life!
3:32pm • #16
104,198 Points 4 Featured Posts Attended Rain Camp
I'm a little behind on my spreadsheet that keeps track of all of this but I took a quick look today...  Next week it's on my list to clean up!
3:45pm • #17
238,620 Points 5 Featured Posts Called Shot Master
Arrah! Tax time! Thanks for the list.
5:55pm • #18
412,368 Points 5 Featured Posts Outside Blog Called Shot Master

You can deduct one pair of boots each year:)  I think that has to be the funniest allowable deduction:)  I am fortunate to have a business tracking website with Brian Buffini.  Every month you input your expenses and it rolls into one complete report on December 31st.  My accountant loves it, too! It holds previous years, in my case, six years.  That is how long I have been a Clubnet Member with Buffini and Company.  I have been a Realtor for twenty-two years:)

It's a Good Life!

Fran
6:31pm • #19
229,646 Points Attended Rain Camp
Thank you Tina. It is better to get a jump start.  I have to my other business and personal so I  might as well get it together.  Best to you in 2008.
6:34pm • #20

This is the first year I am ready. Inputed every other day all the bills every deal took at percentage off and sent it to the tax man every quarter. just have to get my donation receipts then do up the tax. What a relief.

6:49pm • #21
455,527 Points 11 Featured Posts Outside Blog

My receipts are all in a bunch... no problem...also my excel worksheet is ready....
I tally everything together...plug in the numbers and I am done...

no problem.......
7:58pm • #22
152,149 Points 2 Featured Posts

Great post, Tina!

Another easy way to keep track of your receipts.  Look at last year's tax returns.  Create a file for each deduction or credit on your tax return.  During the year, as you come across a receipt, add it to the file. 
Hanging file pockets (shown here from Office Depot) are great for these.  This is a quick, painless way to get rid of the hunt for the receipts that takes place this time each year. 

 
9:09pm • #23
252,464 Points 12 Featured Posts Outside Blog
What a wonderfully detailed post! I spent a couple of hours this morning on categorizing and filing deductions and I am planning to buy a printer tomorrow!!! Thanks for the support
9:41pm • #24
1,380,366 Points 151 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master
Thanks for the reminder.  We have something in common, we both do our own taxes!  The console in my car is chock full of receipts and is reminding me daily what is around the corner!!  UGH!!
11:29pm • #25
DEC
28
2007
625,203 Points 4 Featured Posts Outside Blog

Great post, Tina!  We have kept track of all of our receipts, but getting them in the computer and recorded is a different story.  That's something I will be doing very soon. 

Have a great New Year!
10:05am • #26
170,726 Points 6 Featured Posts Localism Sponsor Outside Blog
Tax Deductions make ALL the difference!!!  Thanks for the post!
10:37am • #27
214,494 Points 1 Featured Post

UGH.. There should be a law against posting about TAXES. :)Just trying to avoid the thoughts as long as possible!  Great post. I'll come back to it in a few weeks.

4:58pm • #28
156,567 Points

Wishing You HAPPY HOLIDAYS and Best Wishes for A GREAT YEAR 2008.

Tommy   New York Certified Home Inspector Long Island NY Nassau/Suffolk/Queens Home Inspections

10:42pm • #29
DEC
29
2007

Thanks everyone for all of your comments. I really appreciate all of your responses!

Enjoy Your Blessings and Happy 2008!

Tina Little-Coltrane, Realtor

Mebane, NC
2:06pm • #30
FEB
04
2008

I pay almost $200 of office fees every month. Can I deduct it in taxes?

 

Thank you for your help.
10:38pm • #31
FEB
05
2008

Hi Irina,

The best person to advise you on those fees would be a CPA-Certified Public Accountant &/or a Tax Adviser.  If you do not have either, I recommend you ask your Broker-In-Charge/Manager about which fees may be allowable expenses that you can deduct.  He/She should be able to give you some general basic direction as to which fees are considered, business/professional expenses.  You also have the option of checking directly with the IRS.

Hope this helps.  Happy Tax Prep Time!  Tina
10:15pm • #32

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Tina Little-Coltrane Certified Notary Loan Signing Agent

Mebane, NC

More about me…

MedBill Office Services, LLC

Address: PO Box 213, Mebane, NC, 27302

Office Phone: (800) 755-2896 x 301

Cell Phone: (336) 675-5280

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