Short answer: yes—TGN Property Management supports the tax preparation process for rental property income by organizing your books, issuing the required tax forms, and delivering a CPA-ready package. We’re not a CPA firm and we don’t file your returns, but we make tax time faster, cleaner, and more compliant.
Throughout this guide, our Los Angeles Property Management experts recommend proactive recordkeeping and clear coordination with your tax professional to optimize deductions and reduce audit risk.
What TGN Actually Does for Tax Prep Support
Here’s what you can expect from our team each year:
- Year-round bookkeeping in Schedule E-friendly categories. We code income and expenses to standard buckets (rents, maintenance, management fees, utilities, insurance, HOA dues, advertising, legal/professional, supplies, etc.). This lets your CPA drop numbers right into Schedule E.
- Annual Owner Statement + CPA-ready Tax Package. You receive a consolidated Profit & Loss, cash flow summary, general ledger, and a categorized expense report, plus copies of major invoices for easy substantiation.
- 1099 compliance. We issue Form 1099-MISC to owners for gross rents collected and Form 1099-NEC to eligible vendors (with W-9 collection and TIN matching), and file electronically when applicable.
- Digital receipt archive. All invoices, work orders, and payables are stored and shareable with your CPA.
- CapEx tracking. We maintain a simple fixed-asset log for capital improvements (e.g., roof, HVAC, major renovation) to support depreciation schedules.
- Security deposit accounting. Separate tracking of deposits held vs. disbursed to keep funds and reporting clean.
For smooth filings, our Los Angeles Property Management experts recommend connecting us with your CPA early so we can share reports securely and answer categorization questions before deadlines hit.
What We Don’t Do (Important)
- We don’t file your tax returns or provide individualized tax advice.
- We don’t choose your entity (LLC, LP, etc.) or opine on complex tax strategies.
- We don’t set depreciation schedules—your CPA will, using our CapEx log and settlement statements.
Instead, we collaborate closely with your tax professional. Our Los Angeles Property Management experts recommend treating us as your books-and-records partner—we keep the data pristine so your CPA can do their best work efficiently.
A Simple Timeline: How We Coordinate Tax Season
- Q4 readiness (Oct–Dec):
- Vendor W-9 sweep and TIN verification
- Expense categorization cleanup and CapEx reconciliation
- Planning touch-base with your CPA if you’re doing renovations, cost segregation, or a refinance
- Here, our Los Angeles Property Management experts recommend a quick review call to confirm any special reporting needs.
- January:
- Draft and deliver preliminary year-end Owner Statement
- Prepare and issue 1099-MISC to owners and 1099-NEC to qualifying vendors (statutory Jan 31 deadlines)
- Finalize the CPA-ready Tax Package
- February–March:
- CPA Q&A support (clarifications, invoice copies, categorization notes)
- If you’re on extension, we’ll remain available for follow-ups and adjustments
- Year-round:
- Real-time categorization, digital storage, and monthly statements so there are no surprises at year-end
Key Tax Concepts Every LA Landlord Should Understand
We’ll keep this practical and CPA-friendly. For specifics on your situation, consult your tax professional.
- Schedule E reporting. Residential rental income and expenses flow to Schedule E. Accurate year-round categorization reduces errors and CPA time.
- Depreciation basics. Improvements to residential rental property generally depreciate over 27.5 years under MACRS. Land is not depreciable. Your CPA needs basis data and a list of capitalized improvements; we maintain a CapEx log to help.
- Repairs vs. capital improvements. Repairs keep the property in ordinary operating condition (expensed). Capital improvements add value or extend life (capitalized). Our Los Angeles Property Management experts recommend labeling larger projects accurately and using invoices with clear scopes so your CPA can make the correct call.
- Safe harbors. De minimis safe harbor (often up to $2,500 per invoice/item) can allow immediate expensing of small-dollar purchases; your CPA will determine applicability.
- Interest, taxes, and fees. Mortgage interest (Form 1098), property taxes, insurance, HOA dues, and management fees are typically deductible on Schedule E.
- Travel and home office. Some expenses can be deductible if properly substantiated. Keep mileage logs and documentation; your CPA will advise limitations.
- Passive activity rules and NIIT. Many landlords are subject to passive loss limitations and possibly the 3.8% Net Investment Income Tax. Planning is key. Our Los Angeles Property Management experts recommend discussing this with your CPA before major renovations or acquisitions.
Los Angeles and California Items to Keep on Your Radar
- 1099 obligations. Property managers are generally required to issue 1099s to owners and eligible service providers; we handle this workflow, including W-9 collection.
- Local registrations. Some owners may need a City of Los Angeles Business Tax Registration Certificate (BTRC) depending on their activity. Requirements vary—confirm with your CPA or advisor.
- Property tax timelines (LA County). While not income taxes, the November/December and February/April installments affect cash flow and deductions; we track payments in your ledger.
- Regulatory changes. Rules can shift. Our Los Angeles Property Management experts recommend a brief annual review with your CPA to adjust for any California or city-level updates.
How We Prepare Your “CPA-Ready” Tax Package
To keep filings efficient and accurate, TGN delivers a clean, standardized packet:
- Year-end Profit & Loss by category suitable for Schedule E
- Full general ledger with transaction-level detail
- Vendor list with W-9 status and 1099-NEC summary where applicable
- 1099-MISC statement for gross rents collected on your behalf
- CapEx and fixed-asset log with dates, descriptions, and amounts
- Copies of high-value invoices and work orders (roofing, HVAC, major plumbing, appliance packages, flooring, etc.)
- Deposit reconciliation and year-end trust account summaries where applicable
Delivering this early helps your CPA avoid bottlenecks. Our Los Angeles Property Management experts recommend sharing any out-of-portal expenses (mortgage interest, insurance you pay directly, home warranty, etc.) with us so your statement reflects the full picture.
Owner FAQs
- Do you file my taxes?
No. We prepare the records and forms that support your CPA’s filing. Think “books and backup,” not tax return preparation. - Can you help me with 1031 exchanges or cost segregation?
We coordinate with your exchange accommodator or engineering firm by supplying rent rolls, expense history, and CapEx detail. Your tax and legal advisors lead strategy. - What if my past records are messy?
We can perform a catch-up bookkeeping project to reconcile the year and produce accurate, audit-ready reports. Our Los Angeles Property Management experts recommend addressing gaps by Q4 to avoid rush fees and missed deductions. - How long do you keep records?
We maintain digital archives consistent with best practices and will provide your CPA or auditor with requested documents upon written authorization.
The Bottom Line: Yes, We Assist—And We Make It Easier
TGN Property Management’s role is to reduce friction and risk at tax time. We keep meticulous books, handle 1099 workflows, maintain document trails, and deliver CPA-ready reports—so your returns are accurate, timely, and defensible. Throughout the year, our Los Angeles Property Management experts recommend proactive planning, clear documentation, and early CPA coordination to protect your deductions and your peace of mind.Ready to simplify tax season? Contact TGN Property Management for a free “Rental Tax Prep Support Checklist” and see how our process can save you time, money, and stress—without compromising compliance.