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bellisadoll
Level 1

How to log expenses and rent for rental property

I have a client that owns properties. Her CPA keeps asking me put things is as regular expenses, but now is telling me I did it wrong. What is the correct way to categorize expenses (remodeling, utilities, etc.) to a rental property? And how do I categorize the rents when it is coming out of different back accounts. Do i still need to do them as receipts?or can I do them as deposits?

1 Comment 1
Rustler
Level 15

How to log expenses and rent for rental property

Since the cpa said it is wrong, I would call and ask for a how to do it right kind of thing.

 

Rent received is income, where it comes from makes no difference. Most of us use an invoice since we send it early, then receive the payment and deposit the amount. But if the tenant comes in and pays, just use a sales receipt and deposit it.

 

I use a class per rental to track expenses paid, but those expenses all go into the same expense account.

 

On the other hand if you are paying rent and utilities, then you enter the rent payment from the bank account you actually paid the rent from, same for utilites.

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