Donna Genie walks landowners through starting a micro-campground, stressing it's an active business, not passive income. You need check-in procedures, hands-on management, and solid bookkeeping to cut taxes. She recommends a DIY accounting program with pre-built charts of accounts.
Do you have some spare land that you're looking to put a few RV sites on and maybe start up your own little campground? Well, we hear news of people wanting to open what I call micro campgrounds quite frequently now, especially in the west where land is plentiful. So let's dive into a little bit about how you want to keep up with that and what you should do if you want to take that plan of action. Make sure you keep up with this like an operating business. This isn't like rental property where you just put collect some rent and somebody lives in a house. Owning a campground, no matter how big or how small, is still an operating business. You have things that you have to do to rent those things out. So can't just put it out there like it's an Airbnb. You have to have check in procedures and things like that going on. So in most cases, you're going to be classified as an operating business and not a passive investment. So in order to keep up with it as an operating business, you're going to have to keep up with your accounting the same way. And you'll want to, because that's how you're going to save on taxes. I would suggest our new process where we have a DIY program where you can keep up with your own accounting. We'll set up the chart of accounts for you and make sure that you have everything you need to be on your way to keeping track of things nice and easily.
