I would like to record this but not under regular rental income. Can someone help with a category or create one for this special circumstance?
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@balzafinancials So, this is a bit tricky, in part because SBA and Treasury guidance about how to approach and document the usage of stimulus funds is still a bit squishy.
We strongly recommend consulting with a qualified CPA to make sure your documentation and usage of these funds conforms with IRS guidance for your unique situation, ownership structure, etc.
That said, it’s technically a loan, and therefore the existing Mortgages & Loans categories are perfectly good buckets in which to track receipt of these funds. Specifically, “Money In” to “Mortgages & Loans > Other Principal” is probably the best fit for recording the initial receipt of funds. If you later satisfy all the requirements and the loan is ultimately forgiven, then you can make adjustments as necessary to zero out the liability.
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What about the grant advance (the portion not requiring a pay-back)?
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I have the same question.
Another option here is to use the “Mortgages & Loans > Proceeds & Payoffs” category to track the initial loan funding as “Money In.” This will then show on your Net Cash Flow report under the new “Purchase, Sale, & Refinance” section.
If part of the loan is advanced as a grant, then you’d need to consult your CPA or IRS guidance to figure out the best accounting treatment. Is it taxable income? Is it loan forgiveness? These are questions only a CPA or the IRS can answer definitively. Stessa does not provide specific tax advice.
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Thanks Devin, that seems reasonable.
How is everyone tracking the repayment of this? Under “Mortgages & Loans” and then assigned to the entire Portfolio?