Rental Property
Ownership Situations
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Credit Co.
Summary
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Bill Payment
Provider
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IC-Home
Edition
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This is not Business Accounting
But,
it tracks Rental Properties and Independent Contractor
Expenses
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• Need to separate and,
• group expenses according to IRS tax reporting
requirements • Year end requires
tabulation |
• Knows nothing
about Rentals tax reporting
• Can group some expenses if a separate Credit
Card is used only for Rentals
expenses |
• Seldom
used by Rentals Owners
• Expenses are reactionary usually based on
need to advertise, repair, buy
supplies |
• Individual tracking provides
for the distinction of each item
paid; • items carried to the appropriate report and the
corresponding line for tax preparation reports |
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• IRS Tax reporting requires
itemization for each property
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Property owner needs to see individual
properties itemized and accumulated as a group
• Owners are often faced with dual entry
of expenses (checkbook & a spreadsheet)
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• Knows nothing
about Rentals tax reporting
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• Knows nothing
about Rentals tax reporting
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• Individual tracking provides
for the distinction of each item paid;
• items carried to the
appropriate report and the corresponding line for tax preparation
reports
• Produces separate Rental
reports for Schedule 'E' for each
property •
Produces Owner detail reports for each
property and, •
Summary of Income/Expenses for all properties
combined |
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• Keep
separate checking account
for Rentals expenses
according to IRS tax reporting
requirements
• Year end requires tabulation |
• Knows nothing
about checking accounts |
• Seldom
used by Rentals Owners
• Expenses are reactionary usually based on
need to advertise, repair, buy
supplies |
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Manages multiple checking accounts •
Establish the checking account used for Rentals expenses and the
checking account for personal expenses •
Tell IC-Home which
expenses/Bills are paid from
each account |
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• Use
same checking account for both
personal and Rentals expenses
• keep Rentals receipts
separate • Year end requires
tabulation |
• Knows nothing
about checking account usage |
• May be used to
pay some personal bills
• Not applicable for most Rentals
expenses |
• Individual expense tracking provides
for the distinction of each item
paid; • expense
items are carried to the appropriate
report and the corresponding line for tax preparation
reports |
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• Have a
separate Credit Card
for Rentals expenses but have only one checking
account and pay the card from that checking
account • Year end requires
tabulation |
• As long as the
card is used diligently only for Rentals, it can show
year end summary by store type when it knows.
• Can't tell if office supply store
purchase was for
• advertising or office supply
• Can't tell if warehouse purchase was for
a Rental, which Rental, or Personal use |
• Office
expenses,
• advertising expenses,
• purchase job supplies and
• Licensing expenses may be paid online but
• can't be scheduled |
• Individual tracking provides
for the distinction of each item
charged; • items carried to the appropriate report and the
corresponding line for tax preparation reports |
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Use same Credit Card
for Personal and Rentals expenses
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Need to separate Personal from
Business?
• Year end requires
tabulation |
• All
Restaurants grouped together
• All Office Supply stores grouped together
• Can't tell which are business and
which are personal
• Can't tell the business
category
• Can't tell if warehouse
purchase was for a Rental, which Rental, or Personal
use |
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Show that Credit Card was paid;
• some show total Home Improvement warehouse
expenses
• some show total Office
supply expenses
• Can't tell which are
business and which are personal
• Can't tell the business
category |
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Individual tracking provides for the distinction of
each item charged; •
items carried to the
appropriate report and the corresponding line for tax
preparation reports |
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• Ever Pay Tolls
or Parking;
• tipped a Bellman or
• Luggage Handler;
• buy gasoline;
• pay for temporary help with
Cash
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• Need to separate Personal
from Business or Home Improvement? |
• Nothing,
• they don't know about it |
• Nothing,
• they don't know about it |
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Having a Cash Allowance
item established, cash paid expenses are
recorded and •
the allowance is replenished; •
items carried to the appropriate report and
the corresponding line for tax preparation
reports |
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• Want to save
money
• for Gifts,
• a new PC,
• new tools,
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miscellaneous expenses,
• improvements
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• appliance
replacements,
• yearly insurance
premiums? |
• Nothing,
• they don't know about it until an item is
paid with a credit card |
• Nothing,
• they don't know about it.
• Banks suggest you have separate saving
accounts for each |
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When a deposit is made, funds are
factored based on the target date and allocated
to each expense;
• this is true
whether it is a bill or a future expense
wish |
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Want to Ease
checkbook balancing
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Nothing |
• Nothing;
• payments still need to be recorded in the
checkbook and
• Checking account balanced
manually |
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Recording of payments
generates an automatic check register and •
balancing is just a few clicks; •
checkbook balancing report printed with a
click of the mouse |
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•Accumulate
money to pay taxes
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Nothing |
• Nothing
• Banks suggest you have separate saving
account to save for taxes |
• When a deposit is made, funds
are factored based on the target date and
allocated to each expense;
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this is true whether it is a bill or a future
expense wish •
Establish a "Tax to be paid"
expense item and money will be allocated to it
with each
deposit |
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