I have a commercial property for which we collect sales tax. I must show for the Income: Sales Tax Collected and for the Expenses: Sales Tax Paid to State. I need to add these two categories one under Income and the other under Expenses.
How do I add a new category?
@gina Thanks for your post. We’re unlikely to add this category because we do not officially support commercial properties on Stessa. It sounds like your retail business would likely benefit from a general accounting platform instead of Stessa, which is purpose built for residential rental properties.
I have to collect rental tax on my residential rental properties, so there are jurisdictions where this is required, so it would be nice to have this as an added feature.
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So do you include the city tax in the rent income since that will coincide with rental payments deposited in the bank? If so how do you designate to the subcategory the actual amount of the city tax that is included in the rent payment?
The best practice here is probably to “split” the incoming rent payment into its two parts (rent and tax), so that the resulting rent payment then matches what’s entered on your Leases & Tenants page. Then categorize the tax portion separately so you have a record of all local taxes collected during the year. We also recommend checking directly with a CPA as we cannot provide tax advice.
Here’s more info on “splits”: How to Split & Merge Transactions
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Hi Devin, I hate to break it to you, but you support “units” and any residential rental property with 5 units or more is technically “Commercial.” Just FYI.
@j2properties It’s an interesting debate for sure. Investopedia tends to lean towards defining “commercial” as being in opposition to “residential,” rather than the broader interpretation (used by many lenders) that any residential building with 5+ units is “commercial.”
And yes, we do of course support multifamily on Stessa, with no upper limit on the number of residential units you can add per property.