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Experienced Member

Investment Property Income

Hello,

 

How best may I account for income from an investment property?  Under tax profile there is an 'other income' box.  Should I put in there the profit figure only (i.e. Rent, minus mortgage, service charge and other costs?).  Or is there a better way of accounting for it?

 

Thanks!

 

Colin

6 REPLIES 6
QuickBooks Team

Re: Investment Property Income


Hello ColinC,

 

We are not trained accountants and so cannot advise how to account for this, and which category to use. We would advise to check this with an accountant.

 

Thanks,

 

Talia

Established Member

Re: Investment Property Income

That is not an acceptable answer, this is accounting software so should allow for rental income. Infact you have a box to insert rental income however it does not seem have any affect on the tax, please advise.

QuickBooks Team

Re: Investment Property Income

Hello Jonny,

 

Thanks for posting on Community.

 

Could you please include a screenshot of this from my knowledge rent should be an allowable expense which should show on the Tax section.

 

Thanks,

 

 

Experienced Member

Re: Investment Property Income

Hello Quickbooks,

 

I have to agree with Jonny that this explanation isn't very helpful.  I've attached a screen shot of the tax profile section where it asks for 'Other Income (i.e. rental income)'.  For this accounting programme to tell me how much I owe HMRC, surely you'll be able to tell me whether this is the total amount of money I make in profit (less mortgage, service charges and other costs), or the total income I make (inclusive of these charges?).

 

Thanks 

 

Colin

Experienced Member

Re: Investment Property Income

Hello Talia,

 

I have to agree with Jonny that this isn't really a satisfactory explanation.  I've added my comments to Jonny's post below, but reattached the screen shot where the prompt for 'Other income - i.e. rental income' is on my tax profile.  In order for this programme to tell me the correct amnount I owe HMRC surely you're able to tell me whether this figure is the total profit made from my rental property (i.e. income less all costs such as mortgage, service charge etc) or as you asking me to put in the total income (inclusive of all these costs?)

 

Thanks

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Established Community Backer ***

Re: Investment Property Income


@ColinC wrote:

Hello,

 

How best may I account for income from an investment property?  Under tax profile there is an 'other income' box.  Should I put in there the profit figure only (i.e. Rent, minus mortgage, service charge and other costs?).  Or is there a better way of accounting for it?

 

Thanks!

 

Colin


Tax reporting can be weird, I can not help with the UK tax reporting specifics but maybe if I explained the US method for this it will get you started looking in the right direction

 

In the US we have a form for rental property reporting (schedule E) which covers rental income, mortgage, taxes, expenses, etc.  I would think the UK has something similar

 

But generally speaking you do not just enter net anything.  Enter income as well as expenses.