Do you do your own taxes?

April 15th has come and gone and tax season has come to pass. For most people, filing taxes is not that t1larg-tax-forms-t1largall that difficult. Especially this year, were you got a standardized deduction rather than having to itemize all of your expenses. In a majority of cases most people can file their own returns.  However, if you own real estate or are running a small business, you will probably need a little help (or in some cases a lot of help) with your tax return. I mean, the laws are always changing regarding depreciation of assets, capital gains and mortgage interest deductions, and if you don’t know what you’re doing it can be a complete nightmare. It has been my experience that hiring a tax professional will actually save you versus cost you money, because accountants understand the ever changing world of taxation. Plus who wants to spend their weekend thumbing through the tax code? Or worse, face a IRS audit? I’ll take a hard pass.

I have found over the years property management is similar to doing taxes. It pays to hire a professional who knows the laws, has the correct paperwork and knows how to attract and screen prospective tenants.

The consequences for not preparing your taxes  correctly are loss of deductions or fines from the IRS.The consequences for doing your own property management are loss of rent, court fines, destruction of property and tons of headaches.

I am not sure what is worse, the IRS or a problem tenant but the good news is they are both very avoidable when you use the right resources.