It seems so easy at first glance! We are preparing to complete our tax return when the accountant suddenly brings us back to earth. “Careful, you’re not really a co-owner in the legal sense of the term.” What? “Another thing, about the old building you purchased, the cost of renovations may be a capital expenditure.” What? “Before I forget, did you know that the money you spent to advertise your space for rent is generally considered a tax-deductible expense?” What?
The temptation is strong to just give the accountant all your papers: “Here, take care of it. It’s too complicated for me!” and wash your hands of it. Then doubt sets in as you lay on your pillow that night. No, you tell yourself, I have responsibilities as an owner, and I will assume them. It’s my duty to understand a minimum of what there is to understand. Continue reading