For those living in states with rental income tax, tracking and paying the tax adds yet another burdensome task on already busy schedules.
Thankfully, AppFolio’s Tax Authorities feature can help!
With this feature AppFolio automatically calculates and generates payables to Tax Authorities based upon the entered tax rate. The calculation is applied to the total amount received on any receipted payment. With this feature AppFolio users don’t have to manually manage entering and tracking tax due amounts, manually setting aside the funds to pay the tax, and manually entering and making the payment. This saves a lot of time!
The feature is easy to setup and easy to use, just contact the AppFolio Support Team to get the feature enabled for your account.
Once the setup is complete AppFolio will automatically set aside the appropriate percentage of income when monies are received on the property, and will also create a corresponding payable (bill) in the system to be paid to the Tax Authority.
When the time comes to pay the tax bill (monthly, quarterly, etc. per local requirements), users simply run the normal bill pay process and select the Tax Authority as the payee. The system will find the unpaid bills that were created and enable users to make payment.
Here’s an Example of how it works:
- User manages a property subject to 7% rental income tax and they are using the Tax Authority feature in AppFolio.
- Income is receipted for the property – AppFolio automatically sets aside 7% of that income and creates a corresponding bill payable to the Tax Authority for the correct amount.
- User pays the tax bill — Simply select the payee as the Tax Authority and AppFolio will return a list of the bills that were automatically created.
- The funds to pay the bill are in the property account and the user can select the bills to pay and complete the check writing flow to make payment.
There is no additional cost to use this feature and the benefits of using it can amount to a great deal of saved time, frustration and headache. If you are an AppFolio customer and are interested in having this feature enabled, please contact firstname.lastname@example.org. If you are not a user of AppFolio and are tired and frustrated with how you have to manage this process, what are you waiting for! Contact us now so we can help you avoid those dreaded tax paperwork headaches!