There’s no requirement to separate water reimbursements from rental income because the total is treated as gross rental income in your tax return. However, if you’d like to track water reimbursements separately, you can do this in two simple steps.
Step 1 – Adjust your rental income
When entering your rental statement:
Add your rental income and usual adjustments as normal
Add an additional adjustment using “Landlord Contribution”
Enter the same amount as the water reimbursement received
👉 This adjustment effectively removes the reimbursement amount from your gross rental income.
Step 2 – Record the water reimbursement separately
Create a new income transaction
Select “Other Rental Income”
Enter the same reimbursement amount
Tip: Make sure you remove the adjustments (click the “x”) before saving.
👉 This adds the amount back to your total income, but now tracks it separately under Other Rental Income.
Tip
Make sure you remove the adjustments (click the “x”) before saving the second transaction, so it records correctly.
That’s it
You’ll now have:
Accurate gross rental income for tax purposes
Clear separate tracking of water reimbursements