Top 10 Best Real Estate Accounting Software of 2026

For those managing multiple properties, Buildium offers comprehensive financial reporting. This feature helps managers stay compliant with trust accounting rules and keep track of their finances. Once you’ve properly set up your chart of accounts for real estate investments it performs better than some of the other accounting-specific tools listed. Nevertheless it can become challenging to track individual properties with more than a few units in the system.

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Their unadjusted basis after the section 179 deduction was $15,000 ($39,000 – $24,000). They figured their MACRS depreciation deduction using the percentage tables. Scalable property management software featuring full-cycle accounting, automated invoicing, cash flow analysis, and compliance reporting for rental portfolios. Here are five specialized real estate accounting software that address these needs with comprehensive features designed specifically for property management.

Accounting Features

• The platform enables users to manage their business expenses seamlessly, reducing the hassle of manual entry.
• Versatile property management tool providing customizable trust accounting for multi-family and single-family rentals with GL integration.
• Banking-integrated platform for landlords providing rental accounting, automated categorization, cash flow tracking, and Schedule E reporting.
• Well-trained staff can manage complex projects more efficiently and reduce the risk of errors.
• If you hold the property for the entire recovery period, your depreciation deduction for the year that includes the final month of the recovery period is the amount of your unrecovered basis in the property.

You placed the computer in service in the fourth quarter https://backinsights.com/professional-real-estate-bookkeeping/ of your tax year, so you multiply the $2,000 by 12.5% (the mid-quarter percentage for the fourth quarter). The result, $250, is your deduction for depreciation on the computer for the first year. If you reduce the basis of your property because of a casualty, you cannot continue to use the percentage tables.

How to Track Rental Property Expenses (+ Free Landlord Spreadsheet)

Rentec Direct is able to accomplish this because we are wholly owned, debt free, and as such do not have revenue requirements from investors. Our roots started with smaller landlords who generally cannot afford the premium prices and minimums found elsewhere and we’re committed to all of our customers regardless of size. Rentec Direct works extremely well for both the startup DIY landlord as well as the professional property manager actively growing their portfolio into many thousands of units.

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Free up your evenings and weekends with AI and smart automations that handle repetitive, manual banking and bookkeeping tasks for you. From industry trends to practical tools, these featured resources are here to support your growth and streamline your operations. ELI personalizes every interaction through data contextualization made possible through an integrated data layer and cutting-edge AI models. On site teams have found real value in these custom interactions, showing a significant increase in efficiency.

• Cloud financial management platform with real estate modules for fund accounting, lease management, and compliance.
• You placed both machines in service in the same year you bought them.
• The platform’s built-in contact management system makes tracking client interactions and payments easy.
• Property management software with built-in general ledger, AP/AR, and financial reporting for multi-family portfolios.
• Property with a long production period and certain aircraft placed in service after December 31, 2023, and before January 1, 2025, is eligible for a special depreciation allowance of 80% of the depreciable basis of the property.
• Entrata’s all-in-one platform brings modern property management technology to manufactured housing, tailored with industry-specific workflows.

On February 1, 2022, Larry House, a calendar year taxpayer, leased and placed in service an item of listed property with an FMV of $3,000. Larry does not use the item of listed property at a regular business establishment, so it is listed property. Larry’s business use of the property (all of which is qualified business use) is 80% in 2022, real estate bookkeeping 60% in 2023, and 40% in 2024. Larry must add an inclusion amount to gross income for 2024, the first tax year Larry’s qualified business-use percentage is 50% or less.

For the year of the adjustment and the remaining recovery period, you must figure the depreciation yourself using the property’s adjusted basis at the end of the year. Instead of using either the 200% or 150% declining balance method over the GDS recovery period, you can elect to use the straight line method over the GDS recovery period. Make the election by entering “S/L” under column (f) in Part III of Form 4562. For 3-, 5-, 7-, or 10-year property used in a farming business and placed in service after 2017, in tax years ending after 2017, the 150% declining balance method is no longer required. However, the 150% declining balance method will continue to apply to any 15- or 20-year property used in a farming business to which the straight line method does not apply or to property for which you elect the use of the 150% declining balance method.

Tracking rent payments, maintenance expenses, property taxes, and mortgage interest across multiple units turns into a tangled mess of tabs, formulas, and late-night headaches. Property managers must maintain organized records of income and expenses to prepare for tax season effectively. This includes identifying deductible expenses and organizing income statements to facilitate tax filing.

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