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

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.

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,

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

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

---

@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.

I'm surprised there isn't a better answer on this, as it's making me reconsider trying QuickBooks to do my accounts, rather than just use a spreadsheet!

I have a main job as a self employed person for which there is income and expenditure, but I also happen to have a flat which I rent out through an agent. There doesn't seem to be space to enter the income and expenditure for this in a property section like there is in the Self Assessment system... 

Any further advice on this would be really helpful, but it doesn't look like QuickBooks SA can handle it?

Hello there, DanAM.

I highly suggest reaching out to an accounting expert. They can guide you on how to properly record and declare rentals. Here are articles to learn more about Income Tax calculation and SA103F Categories.

I'll be right here if you need more help from me. Take care!

Hi. I rent various UK properties. My agents deduct their fees and pay me net of their fees. I need to record the gross rental for my UK tax return. How do I do this? As an example. Monthly rent £1,000. Agents fee £125. The agent deposits £875 in my bank account which shows in Quickbooks but I need to show £1,000 of income for HMRC (UK Tax authority). How do I resolve this in Quickbooks as the bank account only shows the net income of £875?  Thanks Patrick

I can help record the fee so you have a total net income of $1000, Patrick Purcell.

You have two options on how to get the exact amount in QuickBooks Self-Employed.

You can either add the $125 amount or exclude $875, then add $1000 manually. Dong this will help ensure you have a correct record net income recorded in QuickBooks.

Here's how to manually add a new transactions:

1. Go to the Transaction menu, then select Add Transaction.
2. Enter the amount and a description.
3. Select the Select a category menu. Select the best category to organise your transaction. Learn more about categories.
4. If you have a receipt, you can drag and drop it onto the form.
5. When you’re done, select Save.

If you choose to exclude the entry:

1. Go to the Transactions menu.
2. Find the transaction you want to exclude and select it to expand the view.
3. Select the Exclude this transaction checkbox.
4. Select Save.

Once done, you can follow the steps above on how to add the $1000 amount.

Check out these articles for additional information:

• Exclude or delete transactions in QuickBooks Self-Employed
• Manually add transactions in QuickBooks Self-Employed.

Stay in touch with me if you have follow-up questions. I'm always right here to help.