Submitted by Carol Wise, host of Marguerite's Cottage Multnomah Village Portland OR
Our panel of tax experts shared their knowledge of Short-Term Rental (STR) tax preparation and recommendations with us.
We were joined by:
Some highlights of our discussion included:
- Understanding the level of complexity of your own situation. An individual owner with a single STR can leverage simple processes, tools and professional expertise. Most use Schedule E. A partnership or corporation with multiple properties may require more thought and professional expertise to understand and prepare their taxes. And for some Schedule C works best.
- Regardless of complexity, it’s critical to establish a process to collect and maintain documentation throughout the year and well before it’s time to do your taxes. Our panelists shared their recommendation on processes, software tools and a variety of options for professional support to establish a process that works. Quickbooks, Wave and a simple spreadsheet were discussed. Tax Preparers can generally adapt to your process, but it's a good idea to ask your preparer early on.
- Understand current and changing municipal, state and federal tax laws is critical to best prepare and understand the impact of day-to-day and strategic decisions related to your STR business. Talk with a tax preparer to ensure you understand these changes and are taking advantage of all the business deductions allowed.
Our panelists shared their insights during robust Q&A about a wide ranging subjects.
Host2Host members can view the meetup recording (along with other material shared at the meetup) here.
