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.
Alternatively, an owner may need to 'contribute' money (ie. pay additional funds to the Real Estate Agent trust account) to cover expected expenses or urgent repairs.
To account for these situations in TaxTank we have included adjustment categories to enable an accurate gross income total that matches your rental statements.
Landlord Contributions & Refunds
Use category 'Landlord contributions' to account for income on a rental statement paid by a landlord. This income will be excluded from the gross rental income amount.
If there was an overpayment of contributions by a Landlord and a real estate refunds the surplus, use category 'Landlord Reimbursement'. This amount will also be excluded from the gross rental income amount.
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 = ($460) Gross Rental Income = $1440 |
