A 1031 exchange defers your tax bill. It does not defer the bookkeeping problem, and that problem shows up the moment someone tries to record the transaction as a normal sale and purchase, because it isn’t one. Why a 1031 exchange isn’t a sale plus a...
A new roof and a patched leak get treated the same way in a lot of landlords’ books: coded to “Repairs & Maintenance” and expensed the day the invoice is paid. One of those is right. The other quietly distorts your P&L this year and your...
Every dollar spent on a flip falls into one of two buckets, and getting it wrong either overstates your profit mid-project or understates it at sale. There’s no gray area once you know which bucket a cost belongs in — the mistake is usually not knowing the rule...
A mortgage payment is not one transaction. It is three, sometimes four, and booking the whole thing as one lump against a single account is one of the most common ways rental property books go wrong without the owner noticing for months. What one mortgage payment...
A security deposit is not your money, and it is not income. It belongs to the tenant until the lease ends, and the day you start treating it like revenue is the day your books, and possibly your trust-accounting compliance, start being wrong. The mistake: booking it...
Recent Comments