NUTS & BOLTS
ACCOUNTING
Accounting Basics
12 QUESTIONS TO KEEP IN MIND TO MAINTAIN SUCCESS AND PROFITABILITY.
by Carter Froelich, CPA
ed legislative branch will bring.
ccounting is the nonglamorous side of real estate investing, yet
said, a solid knowledge of tax laws and a good certified public accountant on your team, one who can advise you on your short- and long-term portfolio, will allow you to maximize your cash flow and wealth accumulation. The questions below represent some of those that you as a real estate investor need to keep in mind and pose to your tax adviser throughout the year. These questions are made even more important with the potential changes that the Trump administration and Republican-dominat-
1 Are any changes anticipated to occur over the next 12 months that will affect real estate investing? This is one of the most important questions you can ask your adviser be- cause it covers the entire gamut of areas that could affect you as a real estate investor. In order to take advantage of the benefits that Uncle Sam provides entrepreneurial real estate investors, you have to know the rules. This not
it is a critical component of cash flow and negotiations. You need to be well- versed in the latest federal and state rules surrounding taxes and accounting (e.g., exemptions, depreciation, deferrals, de- ductions, marginal tax rates, etc.) so you can use these tools to your advantage. While I wish there were a way to make federal and state law as exciting as “doing deals,” unfortunately I haven’t figured out how to do it. With that
76 | think realty magazine march :: april 2017
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