Keeping Track of Your Real Estate Portfolio – LNK Tax Group
As you start to invest in more real estate, you might ask yourself, should I setup a bank account for each property? The answer is you will likely want to begin using one account for each property for simplicity. However, you cannot have 10 bank accounts for 10 properties, it is just too much to handle and the accounting / bookkeeping becomes much more time consuming, as you will still need to run the numbers separately for each property. Splitting up hundreds (or thousands) of transactions into separate properties takes additional work. When you get to this point, you will likely want to use a more professional bookkeeping system like QuickBooks / Xero or even hire proven professionals.
You will also need to keep track of the depreciation, capital improvements, and basis of all the properties. This is extremely tedious and these records are of the utmost importance when selling and exchanging property tax free. This must be left to proven professionals.
At LNK Tax Group, we are licensed professionals with over 10 years of experience working with Real Estate Investors, Real Estate Developers, Landlords, Real Estate Appraisers, Real Estate Agents, and Real Estate Brokers. Book a free 20 minute consultation with LNK Tax Group so we can help you with your real estate accounting and bookkeeping needs.