Portland Tax Blog

Having rental property can act as a useful way to earn an extra income. Some Oregon residents with multiple properties may even be able to utilize their real estate investments as their main source of income. Of course, you may not feel ready to leave your current job in order to rent out property, but you may feel ready to rent your vacation property out to others a few times a year.

Though you may look forward to putting your property up for rent through a service like Airbnb, VRBO or others, you may want to remember that you hold the responsibility of handling the taxes associated with the income earned from your rentals. If you do not keep this in mind, you could end up in a difficult spot come tax time.

Like many people, once the April 15 tax filing deadline has passed, you sighed with relief. If you got your forms completed on time and sent your check to the IRS, you were ready to relax and return to your normal life. After all, you don't have to think about income taxes again until next spring, right?

If this is your way of thinking, you may be missing out on ways to save money and lower your tax bill next year. This may be especially important if, like many in Oregon, you have watched your tax bill climbing in recent years.

When you considered your options when it came to forming an entity structure for your business, you more than likely took the tax implications of each. Perhaps you either settled on a partnership or chose to have your limited liability company taxed as a partnership. You may have a rudimentary understanding of what that means, but as you approach your first income tax filing, you may need a reminder and/or further information about filing your company's taxes.

Numerous changes occurred regarding taxing partnerships with the passage of the Tax Cuts and Jobs Act of 2017. The first thing you need to know is that your filing date is March 15 or the following Monday if that date lands on a Saturday or Sunday. This is a full month prior to the April date most people see.

Though the holiday season is a time of year many Oregon residents enjoy, it is quickly followed by a season that many people dread: tax season. Thinking about your taxes can understandably cause you to feel stressed, but you may also look forward to the possibility of obtaining a tax refund that could give you some extra cash for expenses or enjoyable activities.

Whether you are someone who likes to file your taxes early or who tends to wait until the last minute, it is wise to prepare ahead of time. Having several documents on hand in advance could help you have all the needed information to correctly file your taxes when you choose to do so.