How to track property expenses and streamline your taxes

Written on October 19, 2017 by , updated on November 13, 2017

expense trackingDeducting rental property expenses is one of the best ways real estate investors can reduce taxable income. But keeping track of receipts and amounts can be time consuming and stressful.

That’s why we’re excited to announce that now you can track your property expenses in Cozy!

As you may know, Landlordology is a free educational service provided by Cozy. As part of our mission to help landlords streamline the rental process, now you can quickly record your expenses by category and download simple reports that make tax preparation a breeze.

Solving a real problem

I’ve been using Cozy to manage my properties for over three years now. As a result, my vacancy rate has gone to near zero, I’m getting higher quality tenants, and I haven’t had to deal with any late rent. But over the years I’ve been frustrated that there wasn’t a good way to track my expenses accurately. While Cozy was streamlining most of my rental business, I still had to track property expenses outside of Cozy. It wasn’t difficult, but it certainly wasn’t convenient. Now it is.

Related: Cozy announcement: New! Expense tracking for landlords

Don’t risk an audit

Organizing expenses for your rentals is one of the most difficult part of filing taxes. Landlords (myself included) can spend hundreds of hours a year updating and validating spreadsheets, while sifting through folders of receipts. And those are only the receipts that make it into the folders.

I own and manage five properties in three states, and even though I consider myself fairly regimented when it comes to business finances, I still estimate that about 10 percent of my receipts end up in the dryer’s lint trap or the floor of my vehicle!

While it’s easy to understand why some landlords wing it, when it comes to deductions and the IRS, it’s not worth the risk of an audit. Properly recording your expenses helps give you peace of mind, and now there’s a way to do it quickly and easily right in Cozy.

Track expenses from anywhere

You can record rental expenses in Cozy from any smartphone. Once you’ve logged into Cozy, you can add an expense amount and category. Then you can snap a picture of your receipt and upload it, so you don’t have to worry about hanging onto that little piece of paper for tax prep time.

You can even split receipts and categorize multiple expenses on the same receipt for different properties. Your “paperwork” will be done before you even leave the hardware store parking lot.

Related: Top 15 tax deductions for landlords

Expenses with Cozy

Easy reporting and exporting

With Cozy, you’re in total control of your info. Whether you’re working with an accountant, tax advisor, or doing your own taxes, you can easily export your recorded expenses into a spreadsheet or PDF. Expenses for each property are summarized by the official IRS tax categories, which you can find on the 1040 Schedule E.

Start saving time and get every possible deduction by tracking your rental property expenses in Cozy. Like collecting rent and screening tenants, expense tracking is free for landlords. It’s one more step toward simplifying your rental business.

Check it out for yourself at Cozy.co

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