HF$ Associates, LLC Telephone Number: (410) 256-9700 9124 Belair Road Fax Number: (410) 256-9788 Baltimore, MD 21236 E-mail Address: email@example.com Rental Real Estate Property Checklist **See below for a special note concerning issuance of 1099s by rental property owners beginning with the 2011 tax year.** Please supply us with the following information if you own real estate that is not your primary residence. The information must be separated by property. 1. Rental Income received 2. Settlement papers from when the property was purchased, called a HUD-1, if not previously provided 3. Estimated value of the land 4. Prior year’s deprecation schedule (unless we prepared your return) 5. Number of days in the year the property was used for personal use 6. Number of days the property was rented for the year 7. Total dollar of rents received 8. Expenses related to the property including: a. Advertising b. Auto (mileage) & travel (related to the property) c. Bank charges d. Cleaning & maintenance e. Commissions f. Legal and other professional fees g. Management fees h. Mortgage interest paid (we will need the 1098 from the lenders) i. Repairs j. Supplies k. Taxes (such as property taxes) l. Utilities m. Any other expenses related to the property 9. Purchase information on new appliances 10. Also provide us with the HUD-1 for any real estate property you sold during the year, and any costs related to the sale of that property. Questions for Claiming Vehicle Expenses: 1) Do you have evidence to support your deduction? Yes No 2) If yes, is the evidence written? Yes No 3) Do you (or your spouse) have another vehicle available for personal use? Yes No Recordkeeping: Your vehicle expenses will not be allowed by the IRS without adequate records or sufficient evidence verifying business use. Daily records provide the best protection in case of an audit. **Issuance of 1099s by rental property owners required beginning with the 2011 tax year.** Under a provision in the recently enacted Small Business Jobs Act, owners of property who receive rental income will be required to issue Forms 1099 to service providers for payments of $600 or more during the year. You must provide a 1099-MISC to any individual or unincorporated business you paid $600 or more for services during the 2011 tax year. These forms will be due to the recipient and the IRS by January 31, 2012. See the following article link for more information: http://www.journalofaccountancy.com/Web/20103537.htm We can prepare the 1099s for you (for an additional fee unless covered in our engagement) provided you supply us with the following information near the beginning of 2012: 1. W-9 for each business or individual. W-9 can be downloaded from the IRS at www.irs.gov/pub/irs-pdf/fw9.pdf?portlet=3 a. We strongly recommend you obtain a W-9 from each individual or un- incorporated business before you pay any funds to them. If they refuse to provide you with the information on the W-9, inform them you will need to withhold 28% of the amount paid to forward to the IRS for backup withholding. 2. Amount paid to each business or individual in 2011.