Love your videos Kenton! My fiancé just opened her own tax business. Everything you mentioned in this video she’s been beating me up for for the last three years! 😂 I have seen the light
Nope...I do all of my accounting myself. I feel it is easier as I am intimately aware of each transaction and most of them are repetitive, so quickbooks actually classifies them automatically and I just approve them. Then I can give the detailed reports to my accountant who then prepares my taxes each year. Having all the accounting done myself ensures that it done correctly and saves me considerable money when doing my taxes.
Thanks for putting this all together. It’s still very useful information in 2023. Property Depreciation is something that might require some more time to comprehend fully. All of the accounting necessary for property ownership 🤯 - just to maintain a healthy RE portfolio.
Thank you for the very informative video. I am a licensed CPA (PH) w/ real estate experience but I wanted to explore more on the residential side especially the accounting differences. Your video complemented my lack of knowledge pretty well. I would just like to ask how do you record miles driven? I know that for every refuel that is to be charged to gas expense but then how does miles driven get in the picture?
I believe you have to choose one or the other. If you deduct miles driven there is a rate. But if you dedicate a car to the business, then you can deduct maintenance and gas, not the mileage. I do record the mileage at the start/end of the year, but it doesn’t come into play if I’m deducting all the expenses for the vehicle.
I spent $14,000 in 2019 on my rental (heating unit and a roof) but I only made $5,000 in rental income from my tenant. Would I be “paying in” or getting money back?
Based solely on the info in your comment, you should show a net loss for 2019, so you should not have had to pay any income taxes on that investment property. In 2020 if you make a profit, you can "carry forward" the excess losses from 2019 to offset your 2020 income and reduce your 2020 income tax. I would highly recommend discussing this along with the other income and expenses regarding your taxes though.
So glad you liked it. I wrote the script, but didn't publish it. I'm sure you'll like my other videos as well, I just explain what I've learned and how I run my portfolio.
@@Londonlamborghini I just concentrate on buying good properties in nice areas, improving them and managing them well after that. To me it’s a business, so each investment must make sense based on the risk and return, including my time and effort.
Very informative. I think I may start to structure things behind the scenes like this. Also you have me very interested in finding out what an umbrella policy is.
Thanks so much for watching, glad you liked it. An umbrella policy is just a policy that is over the top of your normal policy in case one of your limits is exceeded. It's relatively inexpensive, but great protection in my opinion, but talk with your insurance broker for more specific info for your particular situation.
I've always found it very ambiguous on what needs to be depreciated as a capital expense and what doesn't. Some people say new appliances are a capital expense, others say because it isn't permanently attached the property its just a regular repair. What about something small and trivial like a smart doorbell? That's permanent, but it's so small it seems silly to depreciate it. I replaced two locks on one property last year, does that mean I need to depreciate each of them? Also, another thing that isn't clear to me are tools and equipment. For now I've been booking tools as R&M supplies, but it's just not clear to me what the limits are on what you can expense. I probably need a CPA soon but for now I'm still plugging away on TurboTax.
That's a great question and maybe a tax person could chime in here. I rely on my accountant to make the call on those things, but in my experience, repairs for appliances are expensed and new appliances are depreciated. Lock repairs and keys or cores are expensed, but new more expensive locks like a smart lock or an electric strike/door buzzer system would be depreciated. Clearly a CPA is your best resource for this determination.
@@KentonKnows so intelligible. I’m an aspiring accountant for an estate management, what would be your advice to someone in my shoes? What are the core things I need to know? Are there any rituals I should be given to?
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Smash the LIKE and be sure to leave me a comment! Thanks
Love your videos Kenton! My fiancé just opened her own tax business. Everything you mentioned in this video she’s been beating me up for for the last three years! 😂 I have seen the light
@@tidoo2001 So glad to hear that you love my videos, thank you for watching and commenting!
You don't use a bookkeeper?
Nope...I do all of my accounting myself. I feel it is easier as I am intimately aware of each transaction and most of them are repetitive, so quickbooks actually classifies them automatically and I just approve them. Then I can give the detailed reports to my accountant who then prepares my taxes each year. Having all the accounting done myself ensures that it done correctly and saves me considerable money when doing my taxes.
Thanks for putting this all together. It’s still very useful information in 2023.
Property Depreciation is something that might require some more time to comprehend fully.
All of the accounting necessary for property ownership 🤯 - just to maintain a healthy RE portfolio.
Thank you for watching and commenting!
Thank you for the very informative video. I am a licensed CPA (PH) w/ real estate experience but I wanted to explore more on the residential side especially the accounting differences. Your video complemented my lack of knowledge pretty well.
I would just like to ask how do you record miles driven? I know that for every refuel that is to be charged to gas expense but then how does miles driven get in the picture?
I believe you have to choose one or the other. If you deduct miles driven there is a rate. But if you dedicate a car to the business, then you can deduct maintenance and gas, not the mileage. I do record the mileage at the start/end of the year, but it doesn’t come into play if I’m deducting all the expenses for the vehicle.
This is a great reference but it went right through me I see it has so much info so it just went through me.
Good news is you can re-watch it anytime! Hope it helps you with your properties!
Amazing content with helpful tibs for accounting and tax filling. Hands down the best video in youtube for that purpose.
Wow, thanks! I really appreciate it!
Awesome info yet again man. I am using Stessa btw....i like it so far.
Nice, so glad hear that you liked the video and Stessa!
I spent $14,000 in 2019 on my rental (heating unit and a roof) but I only made $5,000 in rental income from my tenant. Would I be “paying in” or getting money back?
Based solely on the info in your comment, you should show a net loss for 2019, so you should not have had to pay any income taxes on that investment property. In 2020 if you make a profit, you can "carry forward" the excess losses from 2019 to offset your 2020 income and reduce your 2020 income tax. I would highly recommend discussing this along with the other income and expenses regarding your taxes though.
this is such good information. thank you kenton knows!
Glad you enjoyed it!
This is awesome information. Does this come with a transcript? I feel like there are so many notes to take on this!
So glad you liked it. I wrote the script, but didn't publish it. I'm sure you'll like my other videos as well, I just explain what I've learned and how I run my portfolio.
@@KentonKnows Yes, I went down the rabbit hole of your videos, haha.
@@ChrisDRodriguez hopefully they provided you with some good tips and information.
can you refer me to your insurance company/agent?
Yes, my insurance broker is in the description of this renter insurance video - th-cam.com/video/-8EcXRWjQoc/w-d-xo.html
@@KentonKnows thank you
Does each of the 8 buildings have 31 apartments
Or do you own 31 doors in total?
I have 31 total apartments. All in chicago.
@@KentonKnows thank for replying ☺️ if u don’t mind my asking is your portfolio goal measured by number of doors or total asset value ?
@@Londonlamborghini I just concentrate on buying good properties in nice areas, improving them and managing them well after that. To me it’s a business, so each investment must make sense based on the risk and return, including my time and effort.
@@Londonlamborghini you might like this video on how I evaluate investment properties - th-cam.com/video/nJZw_BEaUVs/w-d-xo.html
Very informative. I think I may start to structure things behind the scenes like this. Also you have me very interested in finding out what an umbrella policy is.
Thanks so much for watching, glad you liked it. An umbrella policy is just a policy that is over the top of your normal policy in case one of your limits is exceeded. It's relatively inexpensive, but great protection in my opinion, but talk with your insurance broker for more specific info for your particular situation.
I've always found it very ambiguous on what needs to be depreciated as a capital expense and what doesn't. Some people say new appliances are a capital expense, others say because it isn't permanently attached the property its just a regular repair. What about something small and trivial like a smart doorbell? That's permanent, but it's so small it seems silly to depreciate it. I replaced two locks on one property last year, does that mean I need to depreciate each of them? Also, another thing that isn't clear to me are tools and equipment. For now I've been booking tools as R&M supplies, but it's just not clear to me what the limits are on what you can expense. I probably need a CPA soon but for now I'm still plugging away on TurboTax.
That's a great question and maybe a tax person could chime in here. I rely on my accountant to make the call on those things, but in my experience, repairs for appliances are expensed and new appliances are depreciated. Lock repairs and keys or cores are expensed, but new more expensive locks like a smart lock or an electric strike/door buzzer system would be depreciated. Clearly a CPA is your best resource for this determination.
@@KentonKnows Correct
@@_SheriBen Thanks for confirming that!!!!
@@KentonKnows so intelligible.
I’m an aspiring accountant for an estate management, what would be your advice to someone in my shoes? What are the core things I need to know? Are there any rituals I should be given to?