Morgage loan expense tracker printable software#

Especially when you consider all of the potential expenses involved, even if you’re just starting out and own a single rental home. But the truth is it’s easy to become overwhelmed by record keeping.

Back-up or supporting documents – such as receipts, credit card or bank statements – to prove that the income and expenses on your P&L are accurate and legitimate.

A record of incomes and expenses for each rental property, usually in the form of a P&L (profit & loss) statement.

There are two types of records that owners of rental property need to keep:

Accurate record-keeping also reduces the risk of overpaying your taxes by not claiming every deduction you’re entitled to as a real estate investor.

Keeping detailed records and backup all in one place makes it much easier to accurately track the true financial performance of your rental property and avoids errors when filing a tax return.

The IRS will recalculate your taxes for you, and assess additional taxes, penalties, and interest. Expenses that can’t be backed up with a receipt or proof of payment will be rejected.

If you’re ever audited by the IRS, you’ll have to prove your rental expenses are legitimate.It also makes it easier to track your profitability from one month to the next, and helps ensure that you are taking every tax deduction you’re entitled to at the end of the year: Staying organized not only reduces the risk of getting audited. That’s why good record keeping is so important for real estate investors.Īccording to a post on BiggerPockets, large or vague deductions are one of the top three IRS audit areas every real estate investor needs to know. In order to gain the most from your rental property investment, it’s important to report all of your income and expenses as much as you (legally) can.

Morgage loan expense tracker printable software#

The good news is that keeping track of the expenses of owning and operating rental property is easy when you use the best modern software specifically built for residential income property investors. It’s also one of the least favorite things that most real estate investors want to do. You could also include a third category for paying off debts, including credit cards or student loans, and building up your savings and retirement accounts.Tracking rental property expenses is an important part of investing in real estate. Best practice is to set aside around 30% of your budget for items like travel or entertainment that you may enjoy but do not need. These tend to be fixed amounts that don't change monthly.ĭiscretionary charges - such as how much you spend on food or entertainment - may vary and are usually filed under wants, not needs. They can highlight unnecessary spending, show you where there's room to cut back or save, and help you identify how much you need to set aside on essential items such as your mortgage, utility bills, and insurance.Īs you build your expense tracker, you could aim to allocate about half of your monthly take-home pay toward necessities, which may include expenses like your rent.

By sorting all the different expenses you incur into separate categories, expense trackers can be an efficient way to track your spending regularly.