to determine the amount of taxes that you’ll be eligible to claim. NO. 9 DEPRECIATION OF ASSETS Depreciation is another significant deduction. Even though your rental property is most likely appreciating in value, the IRS treats it as though it were depreciating. Depreciation is claimed by spreading it out over a specific period of time, usually 27.5 years. The value of the contents of the building, as well as most improvements that you make to the prop- erty, can be depreciated separately over a shorter timeline – usually five years. everything on your form is important. The IRS can penalize you for making mistakes or for sending in the wrong form, and you’ll want to ensure that you run through your paperwork and double-check your figures before you send it off, so you can make sure the in- formation is correct. Have you correctly calculated your balance due? The most common error on tax returns is bad math, and mistakes calculating totals or transferring figures are a certain way to receive a correction notice back from DOUBLE-CHECK EVERYTHING It may sound trite, but checking
the IRS. The good news is that these errors largely can be avoided by using a tax-software program, like TurboTax, for instance, when filing your return. You’ll also want to make sure you mail your return to the right address if you’re submitting by mail, and of course, make sure you’ve signed it. Carefully checking your tax return for accuracy can help to save you from the frustration of owing more than you should – or, worst-case scenario, an audit. While tax deductions are an import- ant – and legitimate – way to save on your tax bill, keep in mind that the IRS tends to scrutinize many deductions, some more than others. It’s important to ensure that you have proper docu- mentation should you get audited. It also means that you can’t be too careful when claiming deductions – and ensure that you only take deductions that are allowed. For example, don’t try to pass off a vacation as a business expense, unless that was the sole purpose of your trip. If you can’t verify the business ne- cessity of your expenses, avoid claiming them on your taxes. This will save you ENSUREYOUHAVE DETAILED RECORDS
from having to pay the amount, plus interest, if you’re audited.
CONSIDER FILING AN EXTENSION
Finally, if you find yourself in a time crunch, and unable to get your taxes done, be sure to take advantage of the option to file for an extension, which will give you until Oct. 17, 2017, to com- plete your taxes. Just remember that this doesn’t give you longer to pay, just longer to file. So calculate your estimated pay- ment, and pay your taxes, you can always get the difference back as a refund.
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Kevin Ortner is president and CEO of Renters Warehouse. He first joined the company in 2009 as a franchisee for the Phoenix region, and after founder
Brenton Hayden’s retirement, Ortner went on to take the reins of the company, helped see it through monumental growth and helped double the company’s total number of franchisees in the country since 2013. In 2015, he was honored with both an American and International Stevie Business Award for his achievements as Executive of the Year. With Ortner at the helm, Renters Warehouse secured elite honor roll status on the prestigious Inc. 500|5000 list of fastest-growing privately held companies in America for its sixth consecutive year.
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