I need a new income category for utility reimbursement. Many landlords depending on building type may bill back their utilities or a portion to the tenant. Right now the only category that would work in would just be the high-level income category. It would be nice to break this up further to a “utility reimbursement” category under income.
I agree. I have just ran into the same situation.
@devin Thanks. I can see where that could be used for that and see your point. I considered that category more for say you have a clogged drain and you as the owner pay for it. Turns out it was the tenant’s fault and you charge them for the fix. That would fall under that category as more of a one-off expense not something that may come in every month. It still would be nice to break it up further for reporting reasons.
@devin if i am putting the water bill under the refund that the tenants reimburse me for will this show up different in the tax package, vs tenant reimbursement category?
@levelupproperties1 Yes, it will show up differently. “Tenant Reimbursements” is an “Income” category and will report out as such on your financial reports. We strongly suggest consulting with your CPA to determine the proper tax reporting of all “Income” sub-categories.
If you categorize money received from a tenant as a refund to a “Utilities” expense account, it will effectively lower the total “Utilities” expenses shown in your financial reports.
It’s up to you how you want to handle this and how closely you want to track the actual flow of dollars between various parties.