How is everyone categorizing general expenses, such as software subscription like Stessa, or anything that is used to run the business and doesn’t belong to a specific property? Trying to figure out the best way to deal with this for tax reposting purposes.
@bob Most of these transactions will be found under “Admin & Other” - software subscriptions, travel, office supplies, etc.
For “Property” just select the portfolio or parent level, not the specific property. These expenses will then be teased out in specific reports.
Hope that helps.
-Tom
Thanks @tlatuga, I used the work categorize but what I was really looking for was what do you use for “Property” when it’s a general business expense and doesn’t apply to a single property to portfolio? I have multiple portfolios so setting to any one only applies that cost to a subset of my overall properties. For tax reporting purposes I didn’t want to have these expenses applied to someone properties and not others.The only two options I’ve been able to determine would be to either split the cost and figure out how it evenly applies to each property which would be a little work but possible. Another way would be to create an empty portfolio and apply those expenses there. Wondering how others are solving this?
@bob Thanks for clarifying. Definitely ask your tax professional how they would want to see your general expenses spread across your portfolios. My two cents are and how I handle it is by creating a “home office” portfolio, separate from my rental portfolios. Then hand that to my CPA. He divides those up equally across each property. Is it correct? Can’t say 100%. I’m sure you’ll find other tax professionals with differing opinions.
-Tom
Thanks @tlatuga, that’s what I had done too
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