How do I associate a Rental Property with a Business?

Michaelsw97

I'm new to Quicken Home, Business, and Rental Property 2020. I have just created a Business and also created a Rental Property. I've posted initial transactions for Rent Received to the Rental Property, and Property Taxes Paid, and Interest Income to my Business Account. All are associated with the same transaction Tag. When I look at the Business P&L it does not include the Rent Received. Can I associate the Rental Property with the Business so that I can get a complete view of the business, create a Schedule C, etc? I'm thinking of adding another Rental Property next year and want a complete view of my Rental Business. Or are the Rental Property and Business areas entirely separate?

Tom Young

"Or are the Rental Property and Business areas entirely separate?" 

From a tax standpoint the answer to that question is one of those "it depends on" type of answers.

If you're basically just a typical landlord, perhaps renting a single family dwelling and doing the typical "landlord" activities - collecting the rent, paying the property taxes, calling the plumber to fix the toilet when it backs up, and basically not a whole lot more - then that's not a "business" it's a "passive activity" reported on Schedule E.

On the other hand, if you're providing lots and lots of service to your tenants - cleaning the house interior daily, changing the linen and towels, maybe laying out a continental breakfast - now that's a "business" reported on Schedule C.

I don't use the Quicken Home, Business, and Rental Property product but I understand that in order to associate a Category, (e.g., Rent Received) to a "business" you have to assign a line item on Schedule C to that Category.

Of course for your own internal records you're free to look at your financials however it makes the most sense to you.  Just understand that the statutory (tax) view of your activities may require different reporting.

Tom Young

"Or are the Rental Property and Business areas entirely separate?" 

From a tax standpoint the answer to that question is one of those "it depends on" type of answers.

If you're basically just a typical landlord, perhaps renting a single family dwelling and doing the typical "landlord" activities - collecting the rent, paying the property taxes, calling the plumber to fix the toilet when it backs up, and basically not a whole lot more - then that's not a "business" it's a "passive activity" reported on Schedule E.

On the other hand, if you're providing lots and lots of service to your tenants - cleaning the house interior daily, changing the linen and towels, maybe laying out a continental breakfast - now that's a "business" reported on Schedule C.

I don't use the Quicken Home, Business, and Rental Property product but I understand that in order to associate a Category, (e.g., Rent Received) to a "business" you have to assign a line item on Schedule C to that Category.

Of course for your own internal records you're free to look at your financials however it makes the most sense to you.  Just understand that the statutory (tax) view of your activities may require different reporting.

Michaelsw97

Thank you