Questions
Straightforward answers to the questions business owners ask us about bookkeeping, payroll, and what it looks like to work together.
How should a real estate investor with multiple rental properties organize their bookkeeping?
Track each property separately so you can see income and expenses at the individual property level. This is required for Schedule E reporting and gives you the visibility to know which properties are actually making money.
Read answerWhat's the difference between a repair and a capital improvement on a rental property?
A repair restores something to working condition and is deducted in the current year. A capital improvement adds value, extends useful life, or adapts the property to a new use, and must be depreciated over 27.5 years for residential or 39 years for commercial property.
Read answerHow does depreciation work for rental property owners in Virginia?
Residential rental property depreciates over 27.5 years using the straight-line method, while commercial property uses 39 years. You must claim depreciation because the IRS recaptures it at sale whether you took the deduction or not.
Read answerWhen should a landlord form an LLC for their rental properties?
Most landlords should form an LLC before or shortly after acquiring their first rental property. The primary reason is liability protection, which separates your personal assets from claims tied to the property.
Read answerHow do property management companies handle trust accounting for owner funds and security deposits?
Property managers must hold tenant security deposits and owner funds in trust accounts completely separate from operating cash. Commingling is illegal in Virginia. Each owner needs a sub-ledger, and three-way reconciliation is the standard for keeping everything straight.
Read answerWhat's the best way to track short-term rental (Airbnb/VRBO) income and expenses?
Record gross booking revenue and track platform fees, cleaning costs, and supplies as separate expense categories for each property. Virginia localities including Fairfax County impose transient occupancy taxes on STRs, so accurate tracking is essential for compliance and for understanding your true margins.
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