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How to treat rent payment in bank feed

SalBasky

Hi Guys,

I have just added a bank account to my feeds in Business Pro. This account will have rent payments come in through the bank feed.

Given the rent payments will be net, how should I correctly record the expenses (maintenence, agent fees etc) that have already been taken from the rent.

I am reasonably new to this, so any help would be appreciated.

Thank you

Sally.

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Accepted answers

KellyKellyProp

Hi @SalBasky

Personally, I record a 'Receive Money' transaction, but have line items for all the income and expenditure so you can allocate if there is GST on each transaction.

For example: CR Rent: [income] - GST free

DR Management fees [expense] - GST

DR Council Rates [expense] - GST free

Hope this helps!

All comments

DuncanS

@SalBasky

Residential Rent is Input Taxed (Code ITS with 0%).

Input Taxed means no GST is charged on the Rent but no GST can be claimed on Rental Expenses.

Please google and have a read of the ATO website.

Duncan Smith

DuncanS

@SalBasky@ KellyKellyProp

Sal,

Do you receive a monthly/fortnightly Statement from a Real Estate Agent?

This will list the Income and Expenses for the period.

I suggest talking with your Tax Accountant/BAS Agent

The type of property Residential or Commercial and GST Registered affects the GST Codes used.

Let me know.

Duncan

SalBasky

Thanks Kelly

Would you allocate this 'Receive Money' transaction to Undeposited Funds, so that you can match the bank feed entry to it?

KellyKellyProp

Hi @SalBasky

Personally, I record a 'Receive Money' transaction, but have line items for all the income and expenditure so you can allocate if there is GST on each transaction.

For example: CR Rent: [income] - GST free

DR Management fees [expense] - GST

DR Council Rates [expense] - GST free

Hope this helps!

Genreve_S

Hi @SalBasky,

I get why it's important to ensure the rent transactions are spot-on. Providing specific financial advice isn't something we can do as moderators, but I'd recommend consulting a financial advisor or accountant to double-check everything.

Don't hesitate to start a new thread if you have any other questions.

Thanks,
Genreve