The Form 8825 Report
REI Hub offers several reports to help you summarize your numbers, assess your profitability, and prepare for taxes. If you own rental real estate in a multi-member LLC, partnership, or S-corp, you likely need to file IRS Form 8825 to report your income and expenses. The Form 8825 report will show your revenues and expenses in the same format as the IRS form and help you include mileage and pro-rate overhead expenses across your individual properties.
Form 8825 is similar to the Schedule E, which is typically used by individuals who own rental real estate in their name or in a disregarded entity such as a single-member LLC. The two reports differ slightly in their expense categories. The Schedule E has two expense categories for interest—mortgage interest and other interest (non-mortgage), while the 8825 has one combined interest category. The Schedule E has a management fees category not present on the 8825, and the 8825 has a wages and salaries category not on the Schedule E.
The wages and salaries expense account is inactive by default in REI Hub. If you would like to record wage expenses, activate it by navigating to the chart of accounts page, clicking Edit next to the wages and salaries account, and unchecking the 'this account is inactive' box.
- The 8825 pulls off of the default Revenue and Expense accounts and their sub-accounts. If you have created additional Expense accounts that are NOT sub-accounts of one of the defaults, they will be listed underneath the Other column.
- View your overhead, or Portfolio level expenses, in the Net Income by Property report under the 'None Assigned' column.
To view and export your 8825:
1) Navigate to the Reports page and click on Form 8825
- Find it in the Tax box
2) Select the Property and options
- Make sure the appropriate date range or tax year is selected
- If you have entered any Mileage expenses, check the box to include them on Form 8825. They will roll in under the 'Auto and Travel' expense category.
- If any transactions are booked to the Portfolio or Sub-Portfolio level, check the box to prorate them evenly across all included properties.
- View transactions booked to the Portfolio level in the Net Income by Property report, under the 'None Assigned' column.
4) Click Generate Report to view and Export to download as an Excel file.
- The Form 8825 export will immediately download to your computer.