Sunny skies, blue water, and white sand aren't the only reasons to love San Diego. America's Finest City is also attractive for landlords seeking to increase their profits.
Research shows that rent increased by over 3% from 2022 to 2023, reaching $2,417 monthly. The increase stems from the rising number of people seeking to rent versus buy homes in San Diego since the city's homes are relatively expensive.
Learning how to manage tax statements and 1099s is essential for landlords in San Diego. Let's explore essential tips for streamlining your tax time processes as a landlord in the city.
Landlord Tax Forms
An important part of managing an investment property in San Diego is understanding tax statements and property tax preparation, especially close to tax season. These documents include the 1099-MISC Internal Revenue Service form and quarterly or monthly rental statements.
1099-MISC
This IRS form is required to report rental property income in San Diego. You must file a 1099-MISC if you received $600 or more for rent. The information you'll need to file the IRS form includes the amount received, your taxpayer ID number, your address, and your name.
Perhaps you've hired contractors during the tax year. You'll need to issue 1099s to them, too, if you paid them $600-plus for services rendered. These services may range from property management to maintenance, cleaning, and repairs.
Deliver these forms by the last day of January to remain compliant with federal law. Follow the 1099 form instructions carefully to fill out your forms completely and accurately.
Rental Statements
These papers are essential for tracking your financial success, giving you a clear look at your property's profitability. The components of monthly or quarterly rental statements include the gross rent collected, which is the rent payment amount received before deductions.
Operating expenses are another important part of the rental statements that landlords in San Diego generate. Costs associated with a property's upkeep and operation include property management, utility, and repair costs.
Tax Document Management
A few property management tips for landlords seeking real estate tax account advice include reviewing your rental statements closely. Ensure your rental statement spending and income amounts are consistent with your bank deposits and correct.
The data on your rental statements should help you complete Schedule E, a tax form required for reporting a loss or income from property rentals. Use the data to calculate your business's loss or profit.
Help With Tax Statements and 1099s
Vital forms for landlords in San Diego include rental tax statements and 1099s. A 1099 is necessary for reporting rental income or the amounts paid for related services. Tax statements highlight your rent collection and operating expense amounts during the tax year.
At Harland Property Management, we can produce the documents you need for tax season. Our goal is to help you optimize your real estate tax situation and meet legal requirements.
Our other services include managing and marketing your property, finding and screening tenants, and handling rent collection and property maintenance. Make tax season simpler by partnering with us!
