According to a release last week by the Government Accountability Office, at least an estimated 53% of individual taxpayers with rental real estate misreported their rental real estate activities for the period examined.
The report concludes that significant obstacles are standing in the way of improving tax compliance by owners or rental real estate and cites that the fact that taxpayers may not fully understand the complex rules governing the reporting of rental real estate activities.
Opportunities that the government sees to improve compliance by individual taxpayers include improving existing information reporting requirements and requiring taxpayers to provide greater detail of information on their tax returns.
Many of our clients own rental real estate and will be affected by any additional administrative tasks that they must perform in order to stay in compliance. We will keep you up to date if any of these recommendations actually become a requirement.
You can read the full government report here.
Donna Bordeaux, CPA with Calculated Moves
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.