In some instances a Real Estate Agent will 'hold over' rental income (ie. not pay it out to the Landlord) to accumulate funds to pay expected expenses.
To account for these situations in TaxTank we have included adjustment categories to enable an accurate gross income total that matches your rental statements.
Rent held over by a Real Estate Agent
Use category 'Rent not paid out (Held by agent)' to account for rental income not paid out to a Landlord on a rental statement. This amount will be included in the gross rental income amount (as it was earned during that period).
In a following rental statement, when the amount held over is used to pay expenses, use category 'Funds held by Agent'. This income will be excluded from the gross rental income amount (because the original income was recorded in the previous rental statement).
Example
Net Rental Income = Amount received on your bank statement
Gross Rental Income = The total rental income before any deductions
April Statement | May Statement General Repairs = ($500) Gross Rental Income = $1500 |
