Here at Camuso CPA, we offer a wide array of tax services for real estate investors including tax preparation and tax planning. If you are interested in how this might specifically benefit your business or portfolio, please don’t hesitate to reach out in detail today to schedule a free initial consultation regarding your specific facts and circumstances.
Many investors think earnest money deposits are an expense when in fact they are treated as an asset. Although an earnest money deposit is no longer in your possession once paid, it will give you a direct value in the near future whether you purchase a property or whether you receive a refund of your earnest money deposit. When you pay the earnest money deposit, you are creating a current asset, and when you purchase the property, the earnest money deposit reduces your cash payment that is a reduction of a current asset.
While it is very important to track earnest money deposits for any real estate investor, it becomes increasingly important for flippers and investors who are purchasing real estate on a large scale. When you expand your business or portfolio and there are multiple purchases taking place in a short amount of time, earnest money deposits can be overlooked.
Here at Camuso CPA, we do have the ability to offer tax preparation and planning services to our real estate clients. If you are interested into how this might benefit your business or portfolio, please don’t hesitate to give us a call today. One of our friendly and knowledgeable representatives will be happy to answers any questions you have.