How to add an uncategorized depreciation entry
In REI Hub, you can make depreciation entries for an individual fixed asset, or you can make an uncategorized depreciation entry that is not associated with a specific asset.
Uncategorized depreciation entries are primarily utilized when the investor is not directly managing their fixed assets, and receive a single consolidated depreciation entry from their CPA or tax preparer that encompasses all of their assets.
To enter uncategorized depreciation:
1) Click Add Transaction from the top of the left menu
2) Select Depreciation from the list
3) Enter the date and amount, do not select or add a Fixed Asset
Since depreciation is a non-cash expense or deduction (not a bank transaction) it can be entered anytime in the relevant accounting period. For consistency and simplicity, we recommend making your depreciation entries on December 31st of the appropriate year.
Enter in the total depreciation amount for the calendar year. Since this entry is being made on an uncategorized, entire-portfolio basis, leave the fixed asset field blank (and presumably you do not have individual assets entered).
4) Click Save Depreciation
Your depreciation entry has now been added to your books. You will see it displayed as an Expense on the Net Income and Schedule E reports.
5) Reach out to us with any questions or for assistance!