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Real estate investors and property management companies are among the most common clients in every tax firm. However, they are often overlooked as an opportunity to proactively deliver client accounting services, as well as proactive tax planning services that flow from access to financials.<\/p>\n
If your clients are taking advantage of the safe harbor rule<\/a> to claim the Sec. 199A qualified business income (QBI) deduction for rental real estate, one of the requirements is to maintain books and records for the real estate activity. For investors who were not previously keeping books, the Tax Cuts and Jobs Act<\/a> provides an opportunity for tax professionals to educate clients about the requirement to keep books if they are using the safe harbor rule. This is also an opportunity for you to proactively set up the books and automate the accounting activity. With very little effort, you can help your clients have a deeper understanding of their rental real estate activities, qualify for the QBI deduction and proactively deliver tax planning services.<\/p>\n This video<\/a> demonstrates how QuickBooks\u00ae Online<\/a> tracks real estate accounting by location to create a balance sheet and income statement for each rental activity. By tracking properties by location, you can create a standardized set of management reports to help clients better understand their business, cash flow and tax implications.<\/p>\n