Follow these steps to account for rental income in your Plan.
Rental Property Ownership
Add the real property and any mortgage information in MyPlan > Home and Real Estate> Other owned real estate.
Passive Income from Rent
Add the net rental income received in MyPlan > Income> Passive Income.
Typically, on Schedule E of your IRS Form 1040, you compute your net income from rent. You subtract expenses, including mortgage interest and depreciation.
When calculating your net income from rent for our Planner, subtract expenses such as maintenance, taxes, insurance, and management fees, but do not subtract mortgage interest and depreciation.
You also should not subtract the mortgage principal in either of these calculations as that is accounted for with the asset.
Here's an example:
Rental Income $5,000
Management, taxes and insurance $750
Mortgage <in the planner> $2,000
Passive Income: $4.250
Alternatively, you may enter the gross income, and include the expenses in your recurring expense modeling.
Rental Property Sales
Include any sales expenses such as selling fees as well as Capital Gains Tax in My Plan > Expenses and Healthcare > Recurring or One - Time expenses.
See this video for more information.