About the Tax Packet
While there are many reports available in REI Hub, not all are relevant for tax time. The Tax Packet Export was designed to help investors hone in on the most relevant reports for their needs and then easily download that information to their computer. From there, it can be passed along to CPAs and tax preparers, or simply saved along with your other records.
The Tax Packet does not contain unique reports; you can easily download each report individually if preferred. The Tax Packet downloads your chosen reports all at once, in a .zip file. After you have downloaded the packet, you will open the file to see the reports inside.
When exporting the tax packet, you will have the ability to choose which reports are included. The different reports available for the tax packet are:
- The Net Income by Property Report: This report, also called the Profit and Loss, shows portfolio totals, property by property totals, and any Portfolio Level transactions not assigned to a property. The Net Income reports will reflect any entered Depreciation expenses in the time period, but will not include mileage deductions (because mileage is a tax-specific deduction).
- The Schedule E Report: This is the most common way real estate investors file their property by property rents and expenses. The tax packet will download a Schedule E per property in a sub-folder. The Schedule E report includes the options to prorate Portfolio Level expenses across all properties as well as the option to included mileage deductions from any entries in the Mileage Log.
- The Fixed Asset Schedule: This report provides a breakdown of your fixed assets, asset account balances, and depreciation. Include the Fixed Asset Schedule in your Tax Packet if you have been tracking fixed assets and depreciation in REI Hub. If your tax preparer has been managing your fixed assets and their depreciation schedules on your behalf you may not require this report.
- The Mileage Log: This report includes all of the information from your Mileage Log. It includes the date, miles, deduction amount, trip description, vehicle used, and property (if applicable) for every entry in the log. The Mileage Log export is included in the Tax Packet and can also be exported directly from the Mileage Log page.
- The Balance Sheet Report: This report provides an overview of your assets, liabilities, and equity. Most investors will not need to file a Balance Sheet with their taxes, so it is not included in the Tax Packet export by default. Investors who file as Partnerships may need a Balance Sheet at tax time.
Additionally, the Tax Packet includes a 'Tax Packet Readme' PDF document. This includes context on the reports in the packet and links to relevant knowledge base articles, as well as REI Hub's contact information for your or your tax preparer's convenience.
To download your Tax Packet:
1) Navigate to the Reports page.
Click Reports on the left side menu, and then All.
2) Click on Tax Packet
3) Choose which reports to include.
See above for a brief description of each report and when it may be relevant for your tax situation.
4) If desired, update Schedule E settings.
If you have entered any Mileage expenses, check the box to include them on your Schedule E export. They will roll in under the 'Auto and Travel' expense category.
If you have any transactions booked to the Portfolio level, check the box to prorate them evenly across all of your properties. View transactions booked to the Portfolio level in the Net Income by Property report, under the 'None Assigned' column.
5) Click Start Export and choose where to download the file.
After you click Start Export, the system will prepare the file for download. When complete, the file may download automatically, or a dialogue box may appear asking where on your computer you wish to save the file. Choose a location you can easily access, such as your Downloads folder, the Desktop, or where you store other financial records.
After downloading, find the file and open it. You can access the reports inside, and can also send the whole file to your CPA or tax preparer via email.