Oregon 30-Hour Real Estate Law Practice Test

What assistance might property owner Barbara require from her property manager for tax filing?

1. Property value appraisal

2. Recommendations for tax avoidance

3. Income and expenses reporting

4. Tenant background checks

The correct answer is: Income and expenses reporting

When filing taxes, property owners often need precise documentation of their income and expenses related to the operation of their properties. This includes rental income received and any expenses incurred, such as maintenance, repairs, property management fees, and utilities. A property manager plays a crucial role in providing this information, as they typically maintain detailed financial records throughout the year. Having accurate income and expenses reporting helps ensure that Barbara can appropriately report her earnings and deduct eligible expenses, which is essential for compliance with tax regulations. In contrast, while a property value appraisal could inform property taxes, it's not directly related to the necessary documentation for filing tax returns. Recommendations for tax avoidance may not be pertinent to the property manager's role, as those strategies often require the expertise of a tax professional. Tenant background checks, though important for the management of the property and ensuring suitable tenants, are irrelevant to tax filing requirements. Thus, the property manager’s assistance in providing comprehensive income and expenses reporting is vital for Barbara's tax filing process.