OTB Property Management, LLC

11/11/2017

394 E Town St - Office Space For Lease
3000 - 6000 SF Available
Pricing Negotiable

HOME

11/11/2017

458 Helen St, Columbus OH 43223
$750/mo 2 bed/1 bath
ttps://www.zillow.com/homedetails/458-Helen-St-Columbus-4OH-43223/33864486_zpid/

11/11/2017

Quick Book Codes vs 2016 Real Estate Form 1040 Tax Codes
This is what I use, I recommend consulting your accountant for Tax Advice

11/11/2017

Quickbooks can be difficult for Real Estate use. I have used other accounting management tools and I found simple spreadsheets work best. When trying to use Quickbooks, I had to start with proper coding to match my old ledger, book of accounts, or "books." Books can be used to calculating your return on investment (ROR) but are most often used for capturing your real estate business expenses.

11/11/2017

Quick Books Real Estate
Category Description Table

11/11/2017

Capitalization or Expenses - When it comes to Real Estate Expenses, you must first understand the difference between Capitalized and Depreciated. First and foremost, you CANNOT do both. There is a special exemption form to prove this concept. I'm not sure with one it is but it is a one time exemption form for a depreciated item. It is used to so idots don't Depreciate something they Capitalized so they use a "special" one time form. Most everything may be Capitalized. Capitalized costs are all your expenses.

11/11/2017

Depreciation is used primarily on your home which is depreciated over 27.5 years. You are NOT required to depreciate your home. If you depreciate, the total depreciated amount is due upon sale of your home. As for an investor, Money in my Pocket today is King. The IRS outlines the Items are to be depreciated on their own schedule (i.e. 8 yrs) but see Capitalization.

11/11/2017

Here's my equation for home depreciation (use your CD or HUD):

Purchase - Closing Costs (Fees, title to be Capitalized) - Auditor's Land Value = Net Property Value (NPV)

Annual Depreciation (AD) = NPV / 27.5 yrs
Year 1 Depreciation = AD / 12 mo x (12 - Purchase Month + 0.5)

Example:
$38,000 - Purchase
$500 - Closing cost
10,000 - Auditor Land Value
April - Purchase Month

NPV = $38,000 - 500 - 10,000 = $27,500
AD = $27,500 / 27.5 = $1,000 / year
1 yr D = 1,000 / 12 x (12 - 4 + .5)
1 yr D = 1,000 / 12 x 8.5 = 709
(round up - they're your taxes)