I am using quicken for real estate to handle all my finances. I am buying my first property, and am trying to categorize all the expenses. So here is how I understand it.
The down payment can not be written off.
All other expenses can be written off. Appraisal, points,etc. what would they be classified as? Does anyone know a site that breaks down what can be written off, and what can not be written off?
insurance is expensed
taxes are expensed. make note of any tax credit given for seller’s portion of unpaid taxes.
i expense appraisals if they are paid outside of closing
pretty much everything else is included in the cost of the property and depreciated.
Quicken has pre-defined expense categories which are also linked to certain lines on your tax returns.
The most common expense categories are also grouped by Business Income, Business Expense, Rental Income, and Rental Expense.
You probably don’t need to create new expense categories, look at what is already there for you.