Having a good accountant on your team is invaluable.
It’s important that they’re experienced in understanding and navigating the tax regulations regarding real estate investment. They should be able to guide you in structuring your business, maximizing your deductions while staying within the legal boundaries, as well as maximizing your profits. Your accountant can’t do it all though, so it’s important for you to follow their advice, keep your business organized and stay informed.
If you’re part of an investment group, ask your group members for recommendations for a good accountant. If you already have an accountant for personal purposes, make sure they are also experienced regarding real estate investment tax – not all accountants have a practice with that expertise.
Once you’ve selected an accountant, be sure they understand your real estate investment style and focus; also keep them informed of any changes. Make sure your business system is set up to provide your accountant with the information and documentation they need to prepare your tax return. Their ability to help you maximize your profits and reduce your taxes is only as good as the information you provide them.
Sources: This article was developed with information from: The Bigger Pockets Blog, CREOnline, Financial Web, Property Invested, Realestate.com.au, REIClub.com, Windsor Ontario Executive Rental, Tax tips for Investor Clearing Up Real Estate Confusion; CRA Guides RC4409 Keeping Records & T4036 Rental Income; Top Tax Tips For Real Estate Investors