According to its latest report, for Fiscal Year (FY) 2023, the Internal Revenue Service (IRS) collected over $104.1 billion in unpaid assessments on tax filings with additional tax due. It also assessed billions in extra taxes for returns that taxpayers failed to file on time and delinquent returns.
All those are problems you, as a self-managing rental property owner in Flagler, FL, can face if you fail to master the art and science of tax statements and 1099s.
Don't worry, though; you've come to the right page. Our team of experts at PMI Daytona Flagler has shed light on this matter and shared property tax management and 1099 forms guidance in this post, so please read on.
Understanding Tax Statements and 1099s
Tax statements, including the notorious 1099 forms, are essential for property managers and owners, serving a purpose in tracking:
- Income
- Expenses
- Deductions
The IRS requires landlords and property managers to report specific financial information each year, making it essential to prepare these documents correctly. Non-compliance can lead to penalties and audits, which no one wants to face.
Here's a breakdown of what property managers and owners in Flagler, FL, need to know.
Who Needs a 1099?
Have you paid a single contractor or vendor that's not a corporation at least $600 in non-employment income during the tax year? If so, Investopedia.com states you must issue a 1099 to them.
What Should You Track?
Mastering tax statements and 1099s involves meticulous record-keeping. So, ensure you keep track of all:
- Maintenance, repairs, or upgrades you've made for your rental property
- Payments from tenants, including the rent you collect from them
- Other financial transactions involving your Flagler, FL, rental properties
Why Accurate Reporting Matters
Accurate and efficient tax reporting is critical for maintaining your reputation as a rental unit owner and property manager. Financial discrepancies can erode trust with tenants and the IRS. For property managers in Flagler, FL, mastering tax statements and 1099s facilitates smoother operations and improves financial transparency.
When property managers accurately report earnings and expenses, they position themselves better for potential audits and can reduce the stress associated with tax time. Imagine providing clarity and reassurance to the IRS and your tenants; this is the power of organized financial documentation and property accounting.
Tax Compliance Tips
Here are some strategies to help streamline accounting and reporting landlord income and property management taxes:
- Use accounting software specifically designed for property management
- Maintain an organized physical and digital filing system
- Consider hiring a full-service property management firm offering accounting and financial reporting
Wrap Up Your Tax Season Smoothly
Mastering tax statements and 1099s is vital for property managers and owners in Flagler, FL. With proper organization and proactive planning, you can ensure compliance and avoid dreaded IRS audits.
PMI Daytona Flagler is your go-to for full-service property management in Flagler, FL. Joe Markiewicz, our owner and primary property manager, is a U.S. Army Veteran who brings a unique set of finely honed skills in leadership, operations, customer service, and profitability to the company.
Partner with us to simplify your property management needs! Speak with us today, and we'll happily provide you with a complimentary consultation.
