Essential Steps for Real Estate Professionals Before Tax Preparation
Preparing for tax season can be overwhelming, especially for real estate professionals with numerous financial transactions to account for. To ensure a smooth and hassle-free experience, it’s crucial to take certain steps well in advance. We’ve compiled a comprehensive guide to help you prepare effectively for your upcoming tax return.
Gather Your Information Returns
By the end of January, you should have received various types of information returns crucial for your tax preparation. These forms include but are not limited to:
Form W-2 for employment income
Form SSA-1099 for Social Security benefits
Various 1099 forms for income such as dividends, interest, and nonemployee compensation
Form 1095-A for health coverage purchased through the government Marketplace
Various 1098 forms for reporting mortgage interest, student loan interest, and tuition payments
Form W-2Gs for certain gambling winnings
Schedule K-1s from entities in which you have ownership interest
Ensure that the information on these forms aligns with your records to avoid discrepancies.
Organize Your Receipts
Whether you choose to itemize deductions or claim the standard deduction, having your receipts organized is essential. If you opt for itemization, gather receipts for deductible expenses such as medical costs, property taxes, and job-related expenses. For business income and expenses, ensure your books and records are in order, which will streamline the tax preparation process.
Collect Records for Charitable Contributions
If you’ve made donations to charity and plan to itemize deductions, ensure you have the necessary records. This includes written acknowledgments from the charity for contributions of $250 or more.
Stay Informed About Tax Law Changes
The tax landscape is constantly evolving, with new laws and regulations coming into effect each year. Stay updated on any changes that may affect your tax situation, especially in areas such as healthcare mandates, deductions, and credits.
Compile Personal Information
Make a list of essential personal information required for tax filing, including Social Security numbers for yourself and dependents, addresses of properties, and relevant dates.
Consider Filing an Extension if Needed
If you anticipate needing more time to complete your tax preparation, consider filing for an extension. This will provide additional time until October 15th, but remember to estimate and pay any taxes owed by the original deadline to avoid penalties.
Retrieve Last Year’s Return
Having access to your previous year’s tax return can provide valuable insights and reminders for the current filing. It can help ensure consistency and accuracy, especially when dealing with recurring income sources and deductions.
As you embark on your tax preparation journey, remember that professional assistance is invaluable. Consider partnering with Schroder & Strom, LLP, for expert guidance and support tailored to your specific needs. With their extensive experience and personalized approach, you can navigate tax season with confidence and peace of mind.
Take the First Step Toward Property Tax Relief
Don’t let high property taxes drain your finances or undermine your peace of mind. Contact Schroder & Strom, LLP today to schedule a consultation and explore your options for property tax relief. Our experienced professionals are here to help you navigate the process with confidence and secure a brighter financial future for you and your family.
More About Schroder & Strom, LLP
At Schroder & Strom, LLP, we are dedicated experts in addressing various facets of property tax matters, including Property Tax Grievance, Property Tax Reduction, Property Tax Appeal, Property Tax Assessment, Property Tax Relief, Property Tax Consultation, and legal representation and assistance. Entrust us with your concerns and leverage our profound expertise to navigate the intricate landscape of property tax appeals, whether in Long Island or across New York State. Connect with us today to embark on a journey toward effective resolution.