There are common mistakes some newer landlords make when filing their tax returns. Improving these mistakes ahead of time, saves you money in the long run. Number 1: not declaring rent when it’s received. This one seems like it would not happen to many people, but there are certain times where rent isn’t declared for w/e reason. An example might be– before you start rent, you have to deposit rent for the first month, and the last month. Fair enough, but you have to remember that the last month’s rent on that lease was paid for, therefore it must be documented because it was received, even if that last month isn’t until the next year. Number 2: security deposits count as income if not returned. If a security deposit of $2500 is collected, but you need to keep $1100 for repairs when your tenant leaves, that $1100 has to be filed as income. 3: expenses paid by a tenant are income to the landlord. If an individual has a tenant who decides to pay for repairs, the expenses become income if they are deducted from rent. 4: property and furniture depreciate differently. Furniture depreciates in 7 years and property in 27.5 years, so be sure to be calculating that correctly. And finally, 5: failing to document. I cannot stress this enough guys. It means nothing if you don’t have physical proof of anything. Even things as minimal as the cost of a new key. It ALL has to be documented; protects you in an audit with the IRS and you get credit for your allowable deductions. Always be sure to be consulting your trusted financial adviser when it comes to filing your deductions for your business.