As a Denver Area rental property owner, tax season can feel overwhelming—but at Walters and Company Property Management, we aim to make it easier for you. Each year, by January 31st, we provide you with two important documents:
Your 1099-MISC Form
Your Annual Cash Flow Statement
These documents help summarize your rental income and expenses, making tax preparation more efficient. Here’s what you need to know about each:
What Is the 1099-MISC Form?
The 1099-MISC is an IRS tax form that reports miscellaneous income, including rental income, collected by Walters and Company on your behalf.
Key Details About Your 1099-MISC
Only Box 1 (Rents) will be filled in – This reflects the total rental income collected in the tax year.
Prepaid (Advance) Rent is Included – The IRS considers prepaid rent as taxable income in the year it was received, even if you don’t get the funds until January.
No Expenses Are Listed – This form only reports gross rental income, not deductions or expenses.
What Is the Annual Cash Flow Statement?
The Annual Cash Flow Statement is a consolidated breakdown of all the income and expenses related to your rental property for the year. Instead of reviewing monthly statements, you get all the essential information in one easy-to-read document.
What’s Included in the Annual Cash Flow Statement?
Total rental income collected
General maintenance costs
Property management fees
Utilities paid on your behalf
Other expenses covered by Walters and Company
This statement provides a clear snapshot of your property’s financial performance and is a valuable tool when preparing your tax return.
How This Helps You at Tax Time
Instead of sorting through multiple statements, you can use the Annual Cash Flow Statement to quickly identify deductible expenses and ensure accurate tax filing. Your 1099-MISC provides the rental income information required by the IRS, while the Annual Cash Flow Statement helps track the costs associated with managing your property. By keeping these documents handy and working with a tax professional, you’ll be well-prepared for a stress-free tax season!
Consult a Tax Professional for Personalized Advice
We want to make your tax filing process as smooth as possible, but we’re not tax professionals. If you have questions about deductions, tax strategies, or how to report your rental income, we strongly recommend consulting a certified tax expert. We’re happy to provide any necessary documentation to support your tax filing.
Need More Help?
At Walters and Company Property Management, we’re here to help you maximize your investment and stay organized. If you have any questions about your 1099-MISC or Annual Cash Flow Statement, feel free to reach out!
📞 Call us at 720-357-6655
📧 Email us at rent@rentgowalters.com
🌐 Visit us at www.rentgowalters.com
