Our apologies upfront. This submit form is ridiculously long. But there is a bunch of information we need for new clients, or for those who just became landlords.

Existing clients with no changes in their rentals need only complete the pertinent rental income and expense categories, and any improvements.

PDF Link for Online Submit Form This Rental Property Worksheet is also available as a fill-able and save-able PDF. Super easy to complete and upload to us!

Rental Property Worksheet

If this rental property is not in the same state as you, a non-resident tax return for that state will be prepared and filed even if your rental loses money. The rule is simple - if you have an income producing asset in a taxing jurisdiction, a tax return is required. And in many cases, this works to your advantage since this will help maintain your disallowed or non-deducted losses plus provide historical information for future capital gains calculations.

 

Rental Property Set Up Information

Complete this next section only if you began renting a property in this tax year or if you are a new client. When determining the value of the land, the property assessment from the county assessor can be helpful - we can also help with this too.

Service dates can be misleading. If the property was available for rent on Jan 1 but not rented until Mar 1, the property was technically placed into service on Jan 1. Again the service date is the date the property was available for rent.

 

Personal Residence Conversion

If you owned the property as your personal residence and then converted it to a rental, the basis for depreciation and capital gains is the lower of the fair market value or the adjusted cost basis. Adjusted cost basis includes original closing costs, improvements and any depreciation already taken. If applicable, please provide this information below so we can properly calculate your basis for depreciation (sounds fancy).

 

HUD Request

If you have not provided a HUD or closing statement in connection with the purchase of this rental property, please try to do so. Several reasons- it helps us create a starting point for your depreciation and capital gains calculations since some acquisition costs are added to your cost basis. And there are some other expenses that might be deductible right away in the first year. And lastly, when you sell this property and you cannot find your original HUD, you won't have to worry since we have a copy. Please send a copy.

 

Prior Depreciation

If you are a new client with Blue Skies Tax Service (and were not previously with Watson CPA Group) and you had this property as rental on prior tax returns, we will need the full depreciation schedule. We can help you with obtaining or determining this information too.

 

Improvements, Sale, Management

Did you make any improvements such as new roof, appliances, wall-to-wall carpet, etc.? If Yes, please detail the improvement, date and amount below.

Did you sell or dispose of this rental property last year? If Yes, please provide a HUD or closing statement for the sale, AND provide some basic information such as sale date, sale price and selling costs below. If you received a Form 1099-S (Sale Proceeds) from the title company, please provide a copy of that too.

Have you or will you move back into the rental? If Yes, please provide more details below.

Did you use the rental for personal use last year? Please tell us the number of days you, your family or close friends have used the rental without paying rent, and provide a brief explanation below.

Is your rental considered a vacation rental? Do you list it on VRBO like a ski-condo or beach house? If so, please explain below.

Do you share ownership with anyone else besides your spouse? If so, please provide the ownership percentages and the names of other owners below.

Do you rent a portion or unit of a multiple unit dwelling that you also reside in? Or do you rent a room out of your personal residence, or some other unusual rental situation? If so, please explain below.

 

Mileage and Home Office

Vehicle expenses including mileage and business use of your home (home office) are ONLY reported on the respective worksheets. Home office deduction is reserved for Real Estate Professionals only as defined by the IRS (see below). Once you complete this Rental Property Worksheet, you will be directed to our home page of Online Submit Forms, or you can click on the fancy buttons below to open a separate browser window.

 

Auto Expenses, Mileage
Home Office Deduction

 

Real Estate Professionals

If you own multiple rental properties and / or are electing yourself a Real Estate Professional for tax purposes, please inform us right away. A home office deduction cannot be entertained without being a Real Estate Professional as defined by the IRS or an active real estate agent. Real estate agents are NOT automatically considered Real Estate Professionals- the IRS definition is very strict and a real estate license or being a Realtor does not automatically satisfy the requirement.

 

Rent Received

 

Mortgages

Please send your mortgage interest statements (Form 1098) and any other year-end statements. We will use that information to compute your deduction for mortgage interest, private mortgage insurance (PMI) and real estate taxes. Some lenders are excellent about printing the property address on the Form 1098. If your lender does not, PLEASE write down the rental property address on your tax documents.

 

Expenses

* Cell phone and internet expenses are for managing the property, calling tenants, performing background checks, coordinating with contractors, etc. These expenses are generally about 5-10% business use per rental.

 

** Report mileage expense on the Vehicle Expense and Mileage worksheet (see fancy button above).

 

Other Information

Any other expenses or information that might be pertinent to your rentals? If so, please explain below-

Submission

Please select the tax year that this information is associated with. In addition, please enter your name so we can group your submissions together plus your email address. Click the Submit button below to securely and safely send this information to us. You can submit as many forms as needed. If you later discover an error- simply re-submit your information and check the box below letting us know.

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