Do you need help filing your property tax return? Filing tax statements and 1099s is one of the sacred American duties, and the deadline is April 15 every financial year. You'll often require a 1099 form if you get rental income.
Do you need to pay taxes on passive income? It can be difficult to navigate the tax system on your own. Read on to learn some simple steps to simplify the tax filing process.
1. Gather the Necessary Documentation
Gathering and availing all the needed documentation ensures the IRS gets all the details about your properties. For first-time real estate owners, it can be a challenging task to gather all the necessary documents.
Having adequate documentation ensures you have a record of how the business performs. Documents mitigate the risk of making mistakes, ensuring you don't have to make additional tax payments or penalties.
Record keeping is further enhanced by:
- Keeping all files electronically
- Keeping both state and federal documents
- Organizing financial records throughout the year
- Separating record of rental properties from other finances
2. Hire a Professional
Getting a professional to handle the filing of your tax statements is the best decision you can make. Real estate property managers understand how to navigate the complex tax filing system in Utah and can help avoid mistakes.
Further, a professional understands the specific nuances of the tax system in your state. So, if you have properties in numerous locations, a professional can ensure your tax statements are well-organized.
3. Use Modern Technology
Various technological tools can help you stay on track with your tax statements and 1099s. Tax document organization is further enhanced with electronic tools that can let you submit your taxes to the IRS online.
Filing your taxes online is also beneficial due to the following:
- Fast refunds
- Efficient processing of returns on your rental income
- Minimized risk of making errors
E-filing taxes eliminates the need to maintain a lot of paperwork.
4. Learn About the Local Tax Laws on Tax Statements and 1099s
Local tax laws are dynamic, which is why you need to stay up-to-date and informed about any changes that might apply to you. Property tax preparation involves learning how new tax laws affect your assets.
Some of the tax areas you should be aware of include:
- Available tax deductions
- Deadlines on tax filing
- Income tax rates
Working with a real estate broker in the locality can help you understand the local tax laws and other property management solutions.
5. File Your Taxes Early
Waiting for the deadline to file your tax statements and 1099s can result in errors and unforeseen complications. The best way to avoid any stress and have time for corrections is by filing your taxes well before the deadline.
Doing so allows you enough time for efficient tax document organization. You also enjoy faster tax refunds.
Simplify Tax Filing Today
Tax season is a stressful time for any property manager. But you can enjoy peace of mind and take care of everything by simplifying how you handle tax statements and 1099s.
Handling 1099s and any other tax filing duties is one of the duties of professional property managers. Utah Property Solutions can guide you through the process and provide you with the best property management solutions. Contact us today, and let us help you through the tax season.
