Posted by Al (Wi) on July 03, 2003 at 18:22:37:
You collect every scrap of paper that remotely resembles a tax deduction for your CPA to review. You can put it on a spreadsheet and total up (what you think belong in various categories) and your CPA will charge you less because you did the arithmetic for him.
His job is to interpret tax law and apply it to each receipt (or summary page if you use Quikbooks or a spreadsheet).
He can’t do this if you don’t spend some time every day during the year collecting the data for him to interpret at the end of the year.
Every expense you incur with the intention of making a profit is a legitimate deduction. Record where, when, what who and why for each receipt and you will be well documented.
I use a Microsoft Works database (like a spreadsheet). I know I don’t miss any deductions (I’ve had rentals since 1985), keep all cancelled checks, will not do business with a bank unless I get canceled checks back from them, save every receipt, restaurant stub, etc. etc.
I still go to a CPA because he knows more about depreciation and tax loss carry forward than I do.
If your CPA dosent have at least 10 R/E investors as clients, find one who does. Every legal loophole your CPA dosen’t know about will increase your tax bill.