Documents Roseville Landlords Should Keep on File for Tax Season - Article Banner

Maintaining excellent accounting records and documents will serve you well when you’re renting out Roseville, California home. Tax time will be a lot easier to manage, and you’ll find there’s less risk that you’ll make an expensive mistake. 

Many Roseville property management companies will have the latest property management software, which easily tracks income and expenses from month to month and generates as many reports and statements as you need. If you don’t have a property manager, make sure you’re working with a great CPA or tax attorney.

Here are some of the most important documents all Roseville landlords should have on file. These things will ensure you’re prepared and organized.

Documents for the Current Tax Year

Best practices say you should keep all records and documents for five to seven years. For the current tax year, you’ll want to have some specific things at your fingertips so they’re easy to access. These are the invoices, receipts, and supporting paperwork that will help you prove deductions or clarify income. 

Make sure you have records that can support:

  • Advertising and marketing expenses.
  • Interest paid on your mortgage or credit cards and loans that were used to make repairs or conduct rental property business.
  • Invoices or statements that reflect legal fees, insurance bills, and expenses related to accountants, real estate agents, and Roseville property managers.
  • The costs of home office usage, including internet bills, phone bills, and receipts for office supplies.
  • Maintenance and repairs performed at your rental property. 

You’ll also want to have a careful accounting of the security deposits that were collected and returned. Track your travel expenses that pertain to your rental property business

Make sure you keep copies of checks or payments made to independent contractors or employees who assist with the leasing and management of your rental property. 

Documents for Beyond the Current Tax Year

Smart rental real estate investors know that you have to plan for the long term as well as the short term. While having your current tax documents easily accessible is important, don’t forget the forms and paperwork that you’ll need beyond this year. These are permanent records or documents you’ll want to hold onto basically forever. 

These are documents such as tenant lease agreements and applications, property management contracts, legal documents, permits that apply to your property, and business records such as those that reflect your incorporation as a company. You’ll need all insurance policies, tax returns from previous years, and any mortgages or banknotes. Keep your property titles and deeds, and any correspondence between you and your tenants, vendors, and business partners. 

Paper vs. Digital Files for Tax Forms

man with laptop sitting on an armchair while reading a documentHow you keep your documents is just as important as the list of documents you have on hand. Most people have moved to digital files. Documents are safer in the cloud because you can access them from anywhere. However, it’s also a good idea to back up those electronic files with paper copies. If you’re dealing with a power outage or an internet outage, for example, running to your office for your paper insurance policy could be a lifesaver. 

These are some of the ways we approach holding onto important documents as professional Roseville property managers. If you have any questions, we’d be happy to answer them. Please contact us at Action Properties.