Owning a property as an investment can be lucrative, but it can also come with a lot of financial management hassles.
About 15 years ago I was doing my 1st property renovation ever. That’s me in the blue shirt.
Back then I knew very little about financial management of my assets. I used spreadsheets & a shoebox to keep track of all my money out. Time and experience taught me the rest.
And today I want to share with you what I have learnt and also built for property investors like us.
Investment property/ies are vehicles to building wealth. Tax laws exist to help you make the most of these investment vehicles. Therefore you need to treat this like you would a business. The product is your property.
Like a business, you also need to spend money to make money. Therefore your wealth strategy should not only focus on income but also the tax advantages you get from claiming deductibles against your taxable income.
Let me show you what I’m talking about.
I’ve been a landlord for over 15 years, and I can’t tell you how many times I’ve asked myself:
This uncertainty was one of the reasons I created the Veryfi software suite for landlords like you and I.
Today, I’m better equipped with the tools and processes necessary to track what I’m spending on my investment property and what I’m putting in my bank account. I no longer burn valuable time shuffling a shoebox full of receipts or paper notes. No more weekends buried in a spreadsheet. No more sore eyes from poring over logs of property transactions as burden of proof for the taxman.
Now everything happens in real-time, and it’s easier to catch red flags before tax time. All I have to do is feed the app with data and I’m given a whole new world of insight into my expenses and income.
You’ll have a much easier time with taxes on your short-term vacation or rental property if you treat it as a business from the get-go and keep meticulous records. Here are the basics:
The industry term for all this is bookkeeping. It’s usually boring and time-consuming, but it doesn’t have to be that way.
Veryfi is a suite of bookkeeping apps that are 100% powered by machines, end-to-end. No humans ever see your sensitive personal and financial information.
Veryfi app helps me collect all expenses and income. All you need to do is capture those documents by either taking a picture, emailing to your unique Veryfi email, using cloud storage to push documents to Veryfi.
All these deductibles help reduce your taxable income. Like I said earlier, your wealth strategy should not only focus on income. It should include the claimed losses that would have reduced your taxes and put more money in your pocket.
Losing a receipt is like losing money.
The Veryfi Android app was recently featured as the best top 20 Android apps in 2018. Check out how simple it is to collect receipts using the Veryfi mobile app. The same experience is also available on the iOS.
Whenever I drive my personal vehicle for:
I always use this trusty Veryfi Logbook app to track my drives. All my business-related travels are automatically tracked and recorded, hands-free of course. I now save on average of $10,800 a year on my taxes and can reinvest that money back into my real estate portfolio.
This is the simplest app you will ever use. Once installed & setup you forget about it. When you drive it will automatically pick up the drive and after the drive is done, Veryfi logbook app will send you an alert to categorize the drive. That’s it.
To empower them with all my asset financials. This way no more sending or faxing paper documents at the end of the year when its tax time.
Now my accountant can;
(a) See all my investment property documents (receipts, invoices, bills et al) in real-time 24/7 through the web app (hub),
(b) Be able to contact me using in app cloud messaging and SMS,
(c) Run reports on my assets to gain insights of cash flow, deductibles etc and
(d) Provide me regular advice on how to optimize my investments.
The tools I presented here all integrate together.
So there is no need to do any API connections, learn new interfaces or have multiple logins. One login gets you into the 2 mentioned apps (Veryfi Core and Veryfi Logbook) and also into the Web App which is a unified Hub of all those services in a desktop experience for larger screens.
To get started signup here for 14 days free trial No credit card required - up and running in 30 seconds
If you have further questions please reach out to me directly on firstname.lastname@example.org.
NOTE: Tax advice is complicated, and you should do your own due diligence when receiving advice. Veryfi is not responsible for any tax or other advice provided by any outside entity.
~ Ernest Semerda