Entry for rental income, property taxes and reserves
I currently receive rental income from my checking account. I then transfer the estimated amount for property taxes and reserves to savings. I am having issues with how to account for the transactions. How can I note that what came from checking to savings is for the property taxes account or reserves account? In savings the entry shows as Received From and From account. Would this from account be Rental Income as that’s where the money is technically coming from? Or what is the best way to account for all? When I receive the rent income I place it all to account rental income.
Re: Entry for rental income, property taxes and reserves
Moving money between bank accounts never "comes from" income, all you are doing is changing the address the money lives in.
Short of opening two separate savings accounts, the way to do this in QBDT is with classes.
Create the two classes, property tax and insurance
Do not use transfer, instead use write checks on the primary bank account, change the check number to EFT (elect transfer of funds), do not print, on the expense tab, select the savings bank account, enter the amount for insurance, and select the insurance class. On the next line select the same savings account, enter the amount for property tax, select the property tax class. Save
From the class list in the menu lists you can run a report on the class to see how much you saved toward each of those projected expenses.