If you own income-producing properties in New York City, you’re likely familiar with the challenges of preparing a Real Property Income and Expense (RPIE) statement. These statements are essential for assessing the value of various property types, including commercial properties, residential buildings with more than three units, hotels, motels, and parking garages or lots.
In this blog post, we will guide you through the process of preparing an accurate RPIE statement. When the time comes to file an RPIE, you can always count on the invaluable assistance of Cody Ravalli, CPA.
Understanding RPIE Statements
RPIE statements serve as a comprehensive financial snapshot of your property’s income and expenses. They include crucial information, such as:
Income Details
- Rental income
- Utility income
- Any other sources of income associated with the property
Expense Breakdown
- Utility costs
- Maintenance and repair expenses
- Property taxes
- Insurance costs
Additionally, these statements provide information about your property, including the number of
units in the building, occupancy rates, and the total rentable square footage.
The Purpose of RPIE Statements
The City of New York relies on RPIE statements to calculate the assessed value of your property, which directly impacts the property tax you must pay. Several factors contribute to the property’s assessed value, such as:
- Rental income generated by the property
- Expenses incurred in owning and operating the property
- The current market value of the property
Apart from tax assessment, these statements help the city keep tabs on real estate market trends. By collecting data on property income and expenses, the city identifies market trends in different boroughs and adjusts property tax rates accordingly.
How RPIE Statements Aid Property Owners
RPIE statements are not just a compliance requirement; they are a powerful tool for property owners. By carefully analyzing the income and expenses associated with their properties, owners can identify areas for cost reduction and revenue enhancement. For instance, if the statement reveals high utility costs, an owner can explore ways to reduce energy consumption and lower these expenses.
Property owners must file RPIE statements annually by May 1st. Failure to do so can result in penalties and fines. In such cases, the city may estimate the property’s assessed value based on preexisting data, potentially leading to higher property tax bills.
How a CPA Can Facilitate RPIE Statement Preparation
Now that you understand the importance of RPIE statements, let’s explore how a CPA like Cody Ravalli can be your trusted ally in this process.
Preparation of RPIE Statements
Cody Ravalli, CPA, specializes in preparing accurate and complete RPIE statements that meet NYC Department of Finance requirements. Cody will work closely with you to gather and organize all the necessary financial information, including income and expense data, rent rolls, and utility bills. Moreover, he ensures that you file the statement on time, avoiding potential penalties.
Review and Analysis of RPIE Statements
Cody regularly reviews and analyzes RPIE statements prepared by property owners. His meticulous eye for detail helps identify any errors or inconsistencies that could result in incorrect property assessments or tax bills. Count on Cody to pinpoint areas where you can reduce expenses and increase revenue, ultimately optimizing your financial situation.
Compliance with Regulatory Requirements
Navigating the complex regulatory landscape is crucial when preparing RPIE statements. Cody will ensure that your statement includes all required information and adheres to applicable laws and regulations. This ensures that you stay in compliance with NYC’s requirements, reducing the risk of fines and penalties.
Audit Support
Facing an RPIE audit can be daunting, but with Cody Ravalli’s support, you’ll be well-prepared. Cody can assist you in preparing for the audit, responding to any inquiries or requests for information, and ensuring that the city conducts the audit fairly and accurately. His expertise can help you navigate this process with confidence.
Tax Planning and Strategy
Beyond RPIE statement preparation, Cody can provide valuable advice on tax planning strategies. He specializes in maximizing tax savings and minimizing tax liabilities for property owners. Cody can identify opportunities for deductions and credits, as well as structure property ownership and operation to reduce tax liabilities.
The Takeaway
Preparing an accurate RPIE statement in New York City is a multifaceted process that carries significant financial implications. By enlisting the services of a knowledgeable CPA like Cody Ravalli, you can navigate the complexities of RPIE statements with ease. His expertise ensures that your statements are accurate, compliant, and optimized to minimize your tax liabilities. Don’t leave your property’s financial health to chance—partner with Cody and secure peace of mind in the competitive NYC real estate market. Get in touch with our office today.