If you have been filing City / County returns for prior years, you simply add the Schedule R to your annual return when you submit it for 2018.
My tax preparer (or TurboTax) never told me about this. Why do I have to file now?
The City of Portland and Multnomah County business income taxes have been around for a long time. This is not a new requirement, but some online software and/or tax preparers (especially if they are not local) may not know about the requirement or how best to file City / County returns. Consult with a local tax advisor who can give you customized advice if you have questions or need to catch up on prior year returns.
Now that the Schedule R will be required to be filed each year, this has brought the City of Portland / Multnomah County returns to light — but they are not a new requirement.
Shouldn’t my property manager do this for me?
Typically, property owners are responsible for filing tax returns and paying taxes on their income. Though your property manager may manage the day-to-day aspects of your property, they do not have all of the information to prepare your City / County tax returns and cannot file the Schedule R on your behalf separately from your tax returns. This is best left to your income tax preparer, who should understand the City / County requirements and file the Schedule R with the rest of your tax returns.
Where do I go for more information?
Call your tax preparer! You can also find resources on the City of Portland Revenue Bureau website related to Schedule R and the City of Portland / Multnomah County tax returns in general. Start with https://www.portlandoregon.gov/revenue/
About The Author
Adam R. Kendall Abplanalp, CPA is the President and CEO of The Cobalt Group, Inc., a public accounting firm based in Portland that provides accounting, tax, and advisory services exclusively to rental property owners, managers, investors, and developers. We work with serious rental owners and investors to develop customized services to build, maximize, and execute on tax and business strategies for real estate. For more information, or to schedule a consultation with our team, give us a call at 503-239-8432 or email firstname.lastname@example.org
Please note that the advice contained herein is not specific to any particular tax situation, is not intended or written by The Cobalt Group to be used, and should not be used, to avoid penalties that may be imposed by any government agency, to avoid any tax that is properly due, or to promote, market, or recommend to another party any of the matters addressed herein. The Cobalt Group makes no warranty, express or implied, with respect to the information set forth herein, and the distribution of this information does not constitute the provision of legal, tax, accounting, investment, or other professional advice.
Adam R. Kendall Abplanalp, CPA
President and Chief Executive Officer
The Cobalt Group, Inc.
1100 NE 28th Ave., Ste. 100
Portland, OR 97232
4400 NE 77th Ave., Ste. 275
Vancouver, WA 98662