Time to get rid of any “ghost assets”
Do you have any “ghost assets” lurking around your rentals? A ghost asset is an asset on your depreciation schedule that you no longer have. That means you either sold it or scrapped it…or LOST it!! Good grief.
A study found that 30% of business owners (that includes YOU) don’t know what assets they have, where they are and/or who is using them! That’s pathetic. Don’t sign up for that club! Be different, be a rebel!
It’s important that YOU, as the owner of those rentals, keep a sharp eye on what assets are there. We’re talking drapes, flooring, appliances, furniture and more.
Are you on top of all that?
You need to be….and now is a great time to do just that.
Why would you care? Well, for one thing, what if a tenant is using (or misusing) or stealing an asset? Would you know? Would you care?
When you get rid of an asset (sell it or scrap it) do you tell your tax professional so he/she can update your depreciation schedule? That’s important to do on a regular basis.
So, realistically, how would you go about doing this right now….if you wanted to?
BEST WAY….get a copy of each rental’s depreciation schedule and look over the list of assets and satisfy yourself that they are all still there and in use. You MAY need to visit the rental (oh, no!!) and confirm the list. Scary stuff, huh? But it will be worth it.
Need any help with this? Just give me a call. I can help, a lot! Good luck.