My biggest pet peeve is bad bookkeeping. The problem is that bookkeeping required from real estate investors does not make a lot of sense (some will claim "none"). Even if you hire a bookkeeper, chances are you will not get a good job done - unless your bookkeeper is expert in real estate business.

My goal here is very modest: help people who understand general bookkeeping - but not real estate bookkeeping - get a decent job done. If this is not enough, please check out my More about: Minimum Requirements for Real Estate Bookkeeping

Some people simply enjoy self-torture. They do their own taxes. If you are one of them and you never heard of "depreciation recapture" - it's time to get an accountant. If you already have an accountant and she never discussed "depreciation recapture" with you - you need a new accountant. Either way, it's a good idea to learn some basics. Especially now, when the rules of the game changed. Don't you want to be ahead of the game?

Let's start with an... More about: What the heck is "depreciation recapture"?

Of course, repairs! Why bother with some technicalities?

Because if you don't, the IRS will. Everything you spend to fix the real property is classified is either repairs or improvements. The cost of repairs is a current year expense, fully deductible. The cost of improvements is a capital expenditure, only partially deductible through depreciation.

Let's look at an example. If, after your tenant moved out, you spent $5,000 replacing various broken things (windows,... More about: Repairs or Improvements?