Spring has sprung in the front range – and even in the mountains! While the spring market has been slow to sprout (new inventory is down 6% year over year and homes are averaging 4 days on market) interest rates are still low and there are more and more houses popping up. Mike and I have been thinking about our luxury mountain rental next-steps and are looking into buying land in which to build on near Fraser, Colorado. Skiing and stair building have been on Mike’s docket – and he’s worked on a commercial job as well as the mountain project. I’ve been working on our taxes, have enjoyed showing beautiful bungalows and carriage homes in the Park Hill neighborhoods and spent time with friends in Denver. Have you ever been to Bigsby Folly or Temaki Den? I highly recommend! As spring blooms, I’m reminded to enjoy the weather, reflect on where we’re headed and declutter things that don’t serve me. Happy Spring!
“I decided to do my taxes myself this year. I should be in jail by Friday.” -The Internet
All jokes aside, tax time can be super stressful if you’ve not prepared or kept organized throughout the year, especially if you’re a small business owner! And if you own rentals, you are a business owner. I’ve learned quite a few tax do’s and don’t throughout the years – mostly because I’ve done some of the don’ts – and here are a few tips. I am not a tax professional or a CPA though, so definitely consult a tax professional!
Separate Business & Personal Having a separate business credit card for all expenses pertaining to your properties will help you and your CPA.
Keep Receipts Organized If you’re an active investor, it’s more than likely you have multiple receipts for each of your properties. Each year, start file folders for each property and stay organized from the get go.
Track Maintenance Anytime you have to repair something, call in a contractor, or have an annual inspection, make sure you’re keeping track of which property and how much it costs.
Deductions to ask about for Homeowners
- Write off your mortgage insurance
- Home improvements can be deducted when you sell (so save your receipts/invoices!)
- Home office expenses if you’re self-employed (portions)
- Energy efficient updates
Deductions to ask about for Rental Property Owners
- Local property taxes
- Maintenance and improvements on the property
- Marketing expenses
Arvada Entreneur Community
Our next meetup will workshop challenges & possible solutions in your business.
April 6th Ralston-Central Park from 9am-10am.
Our group will be over by the picnic tables.
Feel free to bring your own coffee, water, or smoothie!
Tips & Teachings
Thinking about doing some spring cleaning? Want to spruce up or freshen up your financial mindset? Here are a few books and podcasts I’ve loved over the past month. Have questions or want help or guidance moving forward with some of these concepts? Don’t hesitate to email me!
- Stacked, Your Super Serious Guide to Modern Money Management (Book) – Joe Saul-Sehy
- Declutter, De-noise & De-stress (Podcast) – Choose FI
- Straightforward Advice to Lower Your Tax Bill (Podcast) – How to Money
Reach out to firstname.lastname@example.org to discuss anything in this newsletter, any questions about real estate investing or if you’re looking to buy or sell!