This may be a dumb question, but I’m not sure what to do… up till now I’ve kept the rental proceeds from my property in my bank account… Where the balance of the account is a good representation of income - expenses. Now that I’m taking those proceeds and moving them elsewhere for other investment purposes, Stessa sees this as a large “negative expense”. How should I manage/track/categorize the transactions where I’m pulling proceeds out of an account for other/external management?
@jeffwiedemann Sure, this is very common and is precisely the reason we have a “Transfers > Owner Distributions” category, which is treated as a “Transfer” and only reported below the line on all reports. In that way, you won’t see any impact on reported NOI or net cash flow. Hope that helps!
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Thanks! I didn’t see that one
It is my understanding that for tax purposes Owner Distributions are different that Owner Draws. I have a single-owner LLC and need to draw money from the account. How should these transactions be categorized?
Not a CPA but I believe from a landlord accounting perspective, draws are roughly the same thing as distributions. My guess is they too should be labeled as an owner distributions in Stessa.