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.
Property City, State, Zip
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 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.
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.
Original Purchase Date
Original Purchase Price
Portion of Price Attributed to Land
Date Property was Placed Into Service
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.
Fair Market Value when Placed Into Service
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)-
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
not to worry since we have a copy. Please send a copy.
If you are a new client with Compass Financial Services 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.
Did you make any improvements such as new roof, appliances, wall-to-wall carpet, etc.? The IRS released Notice 2015-82 in 2015 outlining a de minimum safe
harbor election where a taxpayer can elect to expense items under $2,500. The $2,500 limit is per invoice or per item as substantiated by invoice. Therefore,
if you purchased 5 dishwashers for $600 each on 5 separate invoices or transactions, you may deduct the entire amount as an expense. Prior to this IRS Notice,
you would have had to list the dishwashers as an improvement and depreciated accordingly. Please detail any improvements, whether they qualify for the de minimum
safe harbor rule, and the dates and amounts 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? If so, please explain below-
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
If you own multiple rental properties and / or are electing yourself a Real Estate Professional for tax purposes, please
inform us right away and read our tax article on this election at (important stuff!). 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
Rents Recd on 1099s
Rents Recd Not on 1099s
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, and you want to be cool, please write down the rental property address on your tax documents.
Mortgage Interest 1
Mortgage Interest 2
Mortgage Interest 3
The IRS is a bit out of touch, but to ensure accuracy and proper reporting on your tax returns
here is the list of common expenses in the order that appears on your Schedule E.
Travel (not auto miles)**
Cell Phone (biz portion)*
Internet (biz portion)*
* 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).
Any other expenses or information that might be pertinent to your rentals? If so, please explain below-
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.
Is this submit form an update to a previous submission?
Copyright 2017 Compass Financial Services. All rights reserved. | Powered by CyberBasement