Assuming you are referring to keeping track of rental income for tax purposes, there are a few key ways to do this.
The first way is to keep good records throughout the year. This means tracking all income and expenses related to your rental property. This can be done using a spreadsheet or software specifically designed for managing rental properties.
Another way to keep track of rental income is by using depreciation. Depreciation is an IRS-allowed expense that can be taken on your taxes each year regardless of actual repairs or improvements made to the property. This can be a helpful tool in reducing your overall taxable income from your rentals.
Finally, it’s also important to keep in mind that there are different types of rental income, such as passive and active income. Passive income is generally money earned with little effort on your part, while active income requires more work from you. Different types of rental incomes are taxed differently, so it’s important to understand which category your earnings fall into.
Overall, maintaining accurate records and understanding how different types of rental incomes are taxed will help you stay on top of your finances and ensure you’re prepared come tax time.