Industries
Real Estate Tax Prep
Tax preparation and bookkeeping for real estate activity you report to us, in person or remote.
Rental activity and real estate businesses need income, expenses, and loan records kept apart from personal spending. We prepare the return from the rent rolls and statements you provide.
Offices are only in San Pablo and Concord, by appointment only. Clients elsewhere in California can work remotely.
Services that usually fit
Documents to start
- Rent roll or lease income list
- Mortgage interest statements
- Repair and insurance invoices
- Property tax bills
- Prior-year depreciation schedule, if you have one
Your chart of accounts, built for real estate
Stanza creates and maintains a chart of accounts so the deductions you are allowed to claim are identified and documented.
We set up income, cost of goods or job costs, and expense accounts organized around this industry’s deductible categories and the tax form lines they map to (Schedule C or Schedule E, and Form 1065 or Form 1120-S when an entity files). Sub-accounts separate items with a special tax treatment, so a repair is not mixed with a capital purchase and a liability is not booked as an expense.
Commissions
Commissions you pay are generally deductible when they are an ordinary cost of the business or of the rental. They should be matched to the closing they belong to.
MLS and board dues
MLS and association dues for the business are generally professional expenses. Personal club dues are not the same thing.
Marketing
Advertising for listings or for a rental is generally deductible. The account keeps it apart from personal promotion.
Vehicle
Mileage or actual vehicle costs for showings and property visits need a log. Commuting is not a business mile.
Home office
A home office deduction depends on regular and exclusive business use, and on the method you choose. The account holds the costs. It does not create the deduction by itself.
Repairs and improvements
A repair that keeps a rental in ordinary condition is generally deducted. An improvement that adds value or prolongs life is usually capitalized and depreciated.
Depreciation
Residential rental buildings are depreciated over the recovery period IRS rules set. Land is not depreciated. The account exists so the building is not expensed in the year you buy it.
Property management
Management fees are generally a rental expense. They stay apart from the rent you receive so income is not understated.
How it is managed
- Each month we categorize transactions and reconcile the accounts to the bank.
- Receipts and mileage stay with the transactions they support.
- Personal spending stays out of the business accounts.
- Capital purchases are reviewed against repairs before anything is expensed.
- Vendors are tracked so a Form 1099 can be prepared when a form is required.
- A quarterly review of profit can be used to adjust estimated tax payments when those payments apply.
- At year end we review the accounts with the preparer so deductions are captured and the records support them.
Whether a deduction is allowed depends on your facts and on IRS and FTB rules. We help you claim what you are entitled to and keep records that support it. We do not guarantee savings or a dollar amount.
Book bookkeeping and QuickBooks setup with Lucia Leiva, Certified QuickBooks ProAdvisorCommon questions
- We ask for the prior return first. If it is missing, we tell you what a preparer still needs. We do not invent placed-in-service dates.
- Bring the formation papers and the entity return, if one was filed. Business tax preparation covers that filing when you engage us for it.
- Yes. Use the nearer of the two offices or a remote appointment.
- A repair that keeps the property in ordinary condition is generally deducted. An improvement is usually capitalized and depreciated, and land is not depreciated. Separate accounts keep those items from being combined before the return is prepared.
Offices in San Pablo (510-778-1579) and Concord (925-349-6924). Remote work is available in California.
Ready when you are
Ready to get organized? Book an appointment today.
Pick a time that works for you — in person at San Pablo or Concord, or fully remote.