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I have accordion files for the receipts and spiral notebooks to list the checks for each house. One folder is for hardware and paint where I have accounts it takes a session or two to separate these out. Pretty much analog until I add everything on the computer.
I can do a lot of this while I'm waiting at the doctor's office. Mist seniors do a lot of this and the time goes by when you are feeling productive.
The trick is I go someplace nice to reconcile these. Like a picnic table by the river or in the mountains. Sometimes at a camping spot. I do my calculations for 6 months at a time and can usually break the work into 30 minute increments. Would this help?
All the 1099s go in the file cabinet in one folder.
P.s. you know you can extend until October, don't you? That gives me plenty of summer days when I go to the mountains for organic air conditioning and this is my activity.
Sounds like you have a system that works for you. I don't want to mix taxes with pleasure - lol. I guess I could reconsider that - my thinking is very black and white: "taxes bad," "lounging around, planning trips, going on trips, having fun daily good."
I'm very burnt out, I think.
And most of my life is not fun so this is just another not fun thing that has sent me over the edge.
The key is to keep the lists/ spreadsheets going during the year. I do this on Tuesdays before lunch. Always on Tuesday, and I even have a basket on my desk for all of my Tuesday paperwork that comes in on other days of the week.
That means I have 52 data entry periods per year as opposed to a hair-rending two weeks in April.
I also use tax software rather than trying to understand the sometimes long-winded and sometimes shockingly curt instructions from IRS.
I was happy doing the upkeep and residential property management for 10 years, then one day I woke up and realized it was a burden. Sold out with no regrets. Downsized from a 4600 Sqft home to a 1420 Sqft apartment. And no worries. Never had any commercial properties, can only imagine how much more complicated that might be.
Have split the money between three banks/credit unions that I have been using for 15+ years. Can live comfortably on the interest alone if I didn't have a pension or SS or IRA disbursements.
I am already well off, as are my kids and my former wife, we don't need any more money. So now I am investing in a number of different non-profit ventures, e.g., programs to support victims of domestic violence ( my father was abusive ).
Sounds to me you know what you are doing, so the path forward will become clear !
Thanks for the vote of confidence and the chuckle.
I made a spreadsheet with columns for each of the entries on schedule E. Then I make notes at the bottom for capital expenses when they occur, including the date. I have the blank saved and do "save as" for the 6 month increments.
But the answer to the original question, if you want to retire more fully turn the properties over to a management company.
Very smart procedure.
Property management company would be too expensive, and by that I mean that I cannot justify the expense of charging a commission on rents. The rents are not cheap.
And property management companies wouldn't be able to assist with tax prep.
I ran into this hard the first few years I retired. The 2nd year was the pandemic and I got used to doing nothing. Then when I started doing grown up stuff I had such a negative reaction to doing anything I had to do. Like taxes or even a doctor's appointment.
I relate to this so much!
When my dad was old he expressed that he was happy not to have any appointments one week and I thought that was so odd. Now I understand completely. I was just thinking last night I don't want to book anything at all for the month of February (except massage!).
Everything is just getting to be too much at this point. I want to have fun.
When my dad was old he expressed that he was happy not to have any appointments one week and I thought that was so odd. Now I understand completely. I was just thinking last night I don't want to book anything at all for the month of February (except massage!).
Everything is just getting to be too much at this point. I want to have fun.
Oh shoot the rest of my durn post disappeared. I really think you should pick a property or two and sell them off. Pick the ones that are the most hassle.
Go ahead and take the tax hit unless you have stable renters with stable businesses, then maybe owner finance.
I like Munis for spreading out the $$$. You can choose communities with diverse economies that are well managed and aren't over extended.
I really struggle lately with inertia, lack of motivation, and difficulty focusing like I used to. I have a particular task I need to complete - it's been sitting out on my table for weeks - and every day I vow to tackle it, but every day I don't. I'm not sure if it's menopausal brain fog, adult-onset ADHD, vegetative depression, or just that in retirement there's no deadline or boss forcing me to complete projects, but it's very demoralizing! I do know that I felt I was really "in the swing of things" when I was working and out in the world being productive every day; I had momentum, and tedious chores were just one more thing I accomplished without effort, ticking them off the list. Now they sit there, festering! Maybe it truly is the law of inertia? "A body in motion stays in motion" and the reverse. But you're not alone. As for "preferring to have fun," I had fun the whole time I was working and still have fun - it's not something that's novel to me in retirement - so that's not it....
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