REI Hub makes it easy to track your Fixed Assets and Accumulated Depreciation. Fixed Assets include your rental property as well as capital improvements you make to the property (such as a substantial renovation or a new HVAC system). After a Fixed Asset has been set up, you can book Depreciation against it.
Some key things to know about Fixed Assets in REI Hub:
At this time, Depreciation is neither automatically calculated nor automatically entered by the system on your behalf.
To add your investment property as a Fixed Asset, first create a new Fixed Asset. If you purchased the property prior to the current bookkeeping period (usually before this year) and know your Land/ Buildings/ Accumulated Depreciation numbers, use the Opening Balance transaction. If you purchased the property in the current bookkeeping period, use a Manual Journal to make a property purchase journal entry. Contact us with questions!
Tracking Fixed Assets in REI Hub is optional, and not utilizing Fixed Assets will not harm your ability to keep your P&L or Schedule E books. You can enter an uncategorized Depreciation expense without creating a specific Fixed Asset. However, if you are not tracking your Fixed Assets and Depreciation- make sure your CPA or tax preparer is!
To add a new Fixed Asset:
1) Navigate to the Fixed Assets page.
Find it under Accounts on the left side menu.
2) Click 'Add Asset'
You are also able to add a new Fixed Asset when using the Fixed Asset Purchase transaction type.
3) Follow the prompts to fill out Asset details
There are multiple types of Fixed Assets. Your investment property is a Fixed Asset- but so is a roof replacement after you've owned the property for three years already. Even though they are both Fixed Assets, they will be depreciated on different timelines. Follow the prompts based on the Fixed Asset you are adding at this time to enter the appropriate information.
Many of the fields are optional so that you can create the Asset with the information you have at hand, and update it later.
4) Click on your new Fixed Asset
5) View details, Edit, and Add Transactions from the specific Fixed Asset Page
6) Add the relevant transaction(s)
Use the Opening Balance transaction type when you are transitioning from another accounting system. The Closing Balance from your previous system provides the Opening Balance for REI Hub.
Use the Fixed Asset Purchase transaction type to book purchases, payments, and expenses associated with a Fixed Asset. Do not use the Expense transaction type- that is tied to your operational P&L records.
Use the Depreciation transaction type to book Depreciation against a Fixed Asset. At this time, Depreciation is not automatically calculated by REI Hub. If you are working with a CPA or tax preparer, they will likely provide you with a Depreciation number. If you would like assistance calculating your Depreciation expenses from REI Hub, please contact us.
Use the Manual Journal transaction type to enter property purchases and/or loan origination transactions that occur during your current bookkeeping period. If the purchase occurred prior to the current period, we recommend you use the Opening Balance feature instead.
All transaction types are also available from the Add Any Transaction Quicklink- you don't have to originate the transaction inside the Fixed Asset.
7) Contact us with any questions!
You can submit a ticket through the Knowledge Base, when you're logged into your account via Contact Us, or just send us an email at firstname.lastname@example.org.
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