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Which parcel was the mowing bill for? I could not tell her.

I hold six raw parcels, all in one county, all bought over about nine years. Two are farmed on a handshake lease, one has a billboard easement, the rest just sit there and cost me mowing and taxes. Up until this spring my whole system was one checking account and a shoebox, and honestly it worked fine as long as I was the only person who ever needed to understand it.

Then I started thinking about selling the two smallest, and I wanted real numbers on what each one had cost me to carry. So I hired somebody who advertises books for land investors specifically.

First call, she asked which parcel a $412 check was for. I said mowing. She said yes, which parcel. I didn't know. Second call, same thing, forty times. She would not accept "county taxes" as a category. Every single line had to land on a parcel or she wouldn't post it.

What came out of that was worse than I expected. I had been paying taxes on a parcel I sold in 2021 for two more cycles because the bill kept coming and I kept paying it. Nobody caught it, including me, because it was one line in a stack of similar lines. The other thing was that one parcel, the one I assumed was my quietest hold, had eaten about 60 percent of all the mowing and brush clearing I paid for across nine years.

She also raised a question about which of those carrying costs get capitalized into basis versus expensed, and told me flatly that answer belongs to a CPA, not her. Fair enough. I found one.

She printed a plat map and taped it over her desk. She sends me a photo of it sometimes with notes on it.

11 replies

The taped up map is the tell. On job sites the guys who track cost by area instead of by trade are the ones who actually know where the money went. Everybody else has a total and a shrug.

I lost eight months of a management fee the same way. Autopay on a property I no longer owned. The bank does not care that the deal closed, it just keeps sending the money out the door on schedule.

@arbor the part I like is her refusing to answer the basis question. Bookkeepers who know where their line is are the ones worth keeping. The ones who freelance a tax opinion over email are how people end up amending three years of returns.

@rigging it's the recorded survey drawing that shows how the land is divided into lots with the boundaries and dimensions. Your county recorder or assessor site will usually have them, though how easy they are to get varies a lot by state and county.

Every renovation I've done, the second I stopped tracking by unit and started tracking by "the project," I lost the ability to tell which unit was bleeding. Same disease. Costs less to fix on land because there's fewer lines.

60 percent of nine years of clearing on one parcel is the whole story here. You'd never see that in a total. That's the parcel I'd want to know about before I picked which two to sell.

Coming from zero, what strikes me is that the bookkeeper's actual skill was asking the same annoying question forty times without getting embarrassed about it. That seems learnable.