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How to Handle Tax Season as a Tennessee Property Manager

HomeRiver Group Memphis - Tuesday, November 23, 2021
Property Management Blog

Statistics show that 40 percent of small business owners report that accounting and taxes are the worst part of them owning the business.

Do you find taxes to be a burden for your business? How can you properly prepare for the next tax season? What new approaches could you try in these areas of your business?

Keep reading to learn more about how to handle tax season as a Tennessee Property Manager. 

Prioritize Being Organized

Not only is organization a key to running a successful business overall, but it is integral to avoid chaos come tax season. Making organization a priority can mean something different for everyone.

This might mean outsourcing your tax preparations or having a specific employee and team go over all of your tax deals and documents. This is the last time that you want to discover any new income that was not reported or unpaid sales tax to the state.

Another way to go about this is to write everything down and keep copies of all receipts. For example, if you call an HVAC technician to come evaluate your broken AC unit, you can deduct this as a business expense. It falls under the maintenance of the rental property. 

Know What You Can Deduct

You can deduct property management services since it is how you manage your tenants and facilitate the transactions for your different properties. You can deduct mileage in some cases if you have a long drive from your residence to check in on the properties that you manage.

Every deduction has different parameters and familiarizing yourself with them will allow you to maximize your deduction potential.

Your Role as a Tennessee Property Manager

Think about the responsibilities of your role as a property manager and list out the items that are expenses. You can even write off your home office if you are not located in the same complex or building as the properties that you rent out. This can help you personally pay more toward your mortgage since you are getting a break from using part of your home as your office space.

Maintenance to your work vehicle is another important item to note because all of the driving can lead to oil changes, tire changes, and other signs of wear and tear over time. While you may still use the car for personal use, you can deduct the long drives that wear on your vehicle over time.

Get Started Today

Now that you have read more about how to handle tax season as a Tennessee Property Manager, you can start preparing today. Taxes are a dreaded part of the functions of a business but having a better understanding of how they work and how to prepare them can allow the process to be smoother each time in the future. Check out our blog for more helpful property management articles like this one.