Updated July 27, 2015
Landlord Developer Split Deductions Between Buildings in Chicago Illinois
This can be a real difficulty in the real estate management industry.
Let’s illustrate this using an example.
You manage 300 units spread between 25 different buildings for seven different owners. The seven different owners have them split up into seventeen different entities. Some of these entities are corporations and some are mutli-member partnerships for the sake of our example. Some of these buildings are two flats. Some are 35 unit courtyards. You have four maintenance guys whose main jobs are to maintain the buildings, show units, collect rent, shovel snow, mow lawns, etc., at all of the buildings. You primarily get leases signed and collect security deposits. How do you split up all of the salaries between the twenty-five separate buildings and seventeen different entities?
If you don’t do it properly, when your customers are audited it could cost them additional tax, interest, and penalties. They will probably ask you to pay this bill. This is just one line item on a financial statement. Everything must be split appropriately.
If you are having problems with Landlord Developer Split Deductions Between Buildings in Chicago Illinois or have issues with your accounting in general, we would love to help. I enjoy hearing from my readers, and can be contacted at
Chris@AccountingSolutionsltd.com
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Chris Amundson is the President of Accounting Solutions Ltd., a full service public accounting firm of Certified Public Accountants and Enrolled Agents handling the bookkeeping, accounting, tax preparation, and audit representation needs of Businesses, Estates, Trusts, and Upper Income Individuals.