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Reasons to Review Your Owner Statements and Reporting in Bradenton

Reasons to Review Your Owner Statements and Reporting in Bradenton

Research shows that 37% of small businesses and gig workers experience anxiety and confusion when it comes time to file their taxes. As a Bradenton, Florida, landlord, you might feel the same way.

A lot of people struggle to adequately file their taxes alone, which is why many investors work with property management companies.

A property manager can provide you with regular owner statements and reports that you should always review. Keep reading to learn why this is so important when it comes to investing in real estate.

Importance of Owner Statements and Reporting

Owner statements and reporting provide real estate investors with a complete view of how their properties are managed financially.

Owner statements are organized documents, often provided by property managers, outlining the financial health of a property.

Financial reports help you make informed property decisions so it's important to review them regularly. Depending on the agreement with your property management team, you may get these reports monthly or quarterly.

Owner Statement Components

An owner statement at its core will provide owners with the overall performance of their business. This means that owners will be able to see their profit margin in real-time.

To calculate the profit margin, the statement will cover rental income and rental expenses, such as:

Another crucial element of an owner statement is net income. This number dictates whether or not your property is profitable.

Financial Statements and Tax Forms

Reporting your rental income to the IRS with the information you receive from your owner statements is essential. To stay tax-compliant, you'll want to have accurate records.

Misreporting your income can lead to audits and penalties, even if it is accidental. Keeping your financial statements accurate can help you avoid this.

Additionally, you may qualify for rental property tax deductions. You could miss out on these money-saving deductions without regular reviews of your finances.

Property owners should familiarize themselves with the Schedule E tax form, otherwise known as the Supplemental Income and Loss form. This is where you will report most of your rental income.

1099 Forms

1099 forms are also common documents landlords will use to file their business taxes. There are a few different 1099s that could relate to your property.

For one, the 1099-NEC is required for reporting nonemployee compensation of more than $600. Independent contractors hired for maintenance and repairs are common reasons to require this form.

1099-MISC forms are required for reporting rental income received via cash or checks.

How Property Management Services Can Help

Property management companies, like Gulf Coast Property Management, assist owners and investors like you. We provide everything from lease management to rent collection and financial reporting.

We've been helping Bradenton navigate complicated rental property financial arrangements since 2003. Our full-service packages include everything you need to stay on track with owner statements and reporting.

On an annual basis, we can help you with tax statements and 1099s. Contact us today for a rental property management partner that you can trust.