My properties are in Michigan, and both cities I have rental in require paying registration fees to the city, and they also issue fines for certain items. It would be great to have a category to track this with.
@kevin.hofstee I love details, trust me, but sometimes drilling down to too many specific categories is more of a burden than solving a problem. Would you truly make business decisions based upon this category?
For fines, I believe you could get away with choosing the “Legal - Legal” or “Legal - Court Fees” sub categories. For registrations, I would choose “Taxes” then “Tax Licenses & Registrations”. “City Taxes” could also probably be justified.
Just remember that all of these choices most likely flow to schedule E on your tax return, which is why we go to all of this trouble.
-Tom
100% I would. City fines are avoidable and just giving money away. Legal is for when I need a lawyer involved. I use Court Fees for things like evictions, tenant disputes, etc. Very different courses of action to try and mitigate.
The city registration stuff is less of an issue, and yes I can use tax category for that.