Now that the giving season of the holidays is over it’s time for another kind of giving season: giving to the IRS. With 2009 here it’s time to start thinking about taxes. Your 2008 tax returns aren’t due until April 15, 2009, but it never hurts to get an early start. Most of the deductions available for real estate investments are pretty self explanatory, but if you do your taxes yourself make sure you do your research. I have used software such as H & R Block’s Taxcut and TurboTax in the past and they are good options. Just make sure you used common sense when using such software as you might be missing out on some of the key deductions. For quick overview of the basic deductions check out this article: Top Ten Deductions for Landlords.
If you go the route of hiring a professional make sure you use someone who is familiar with figuring taxes or your kind of real estate investments. Not all CPA’s a created equal and I have heard a few horror stories. It’s sometimes worth paying a little more to make sure you are working with someone who will help you take advantage of all your deductions without opening you up for an audit.
If you have any ax tips you would like to share or CPA recommendations, feel free to share in the coment section below.