Archive for January, 2016

Tax Preparation for Rental Homeowners

Wednesday, January 27th, 2016

January 27, 2016Tax Time North County Property Group

It’s tax time again and April 15th will be here soon. North County Property Group is preparing tax documentation for our homeowners and thought other rental homeowners might be curious about our process, timing, and forms our clients will be receiving. These processes may only be applicable to California and research should be done to find  out the regulations for your particular location.


Tax Implications for Renting Out a Property

  • We advise all of our property owners to consult with their tax accountant regarding the reporting and handling of rent income on their annual tax return.
  • North County Property Group reports the gross rental income collected on a 1099 form to the IRS and State of California. Since the amount reported is “gross” rents, the amount on the 1099 will be different from what has been paid to the owners through their distributions.
  • In addition to your 1099, NCPG will be providing owners with a year end annual statement indicating what has been included in the amount reported on the 1099. Your accountant can also use a statement like this to subtract your expenses on your return to determine your actual taxable income.