How to record tenant paid property taxes

Thanks for reaching out to us, bmrose69.

It's great to hear you know how to add monthly rent and late fees to their invoice. You're almost there.

I need more information on how did you record the property tax payment? Any information can help me in providing accurate solution to your concern.

If you want to pass on the property taxes to your tenant, write a check and use the tax expense account you set up. Then, make it billable to include it as a line item when you invoice them.

Here's how:

1. Go to the Banking menu.
2. Select Write Checks.
3. Choose a bank account where the money will be taken in the Bank Account dropdown.
4. Select a Payee Name or whoever the check was issued for.
5. Fill in the Date, Amount, Address, and Memo (optional).
6. Use the Expenses tab, choose the expense account you create for the property tax.
7. Select the name of your tenant on the Customer: Job column.
8. Checkmark the box on the Billable column.
9. Once done, hit Save & Close.

Then, add the billable expense to your tenant invoice. 

Here's how:

1. Go to the Customers menu, then select Create Invoices.
2. Choose the tenant from the Customer:Job dropdown.
3. Ensure the Select the outstanding billable time and cost to add to this invoice? is selected on the Billable Time/Cost window, then hit OK.
4. Go to the Expenses tab and checkmark the billable expense, then hit OK.
5. You can add a description so you can identify that it is the property taxes that you're charging to your tenant.
6. Add other item such as the rent and late fee.
7. Once done, hit Save & Close.

Check the following articles below for more details:

• Record transactions for a property management company
• Create, modify, and print checks

I'm including this resource for future reference in recording payments: Record an invoice payment.

If you have further questions about the process, let me know. I'll be around to help you.

@bmrose69 

I understand how to do the monthly rent and late fees, but not sure how to create an item for property taxes received, because technically it is not income.

Actually, it is income.  If you pay property taxes and record it as an expense, you should record the tenant's reimbursement as income.  The two offset and you will have $0 net income/taxable income.  Many cities require you to record all payments received by a tenant as part of gross income, including amounts received for property taxes.