Some expenses are depreciable charges that can be deducted from tax. Depreciation is the loss of value of an asset over a given period, and each year you can deduct the amount of that loss. This article explains how to record depreciation from the “Finance” section, the straight-line method Rentila uses, and typical useful lives with a worked example.
To add an expense, go to the “Finance” section and click “New transaction”, then “Add expense”. For each expense you can enter the property, the type, the date, the payer and the amount, plus the tenancy agreement, the recurrence, the VAT amount, the recoverable amount, a description and the associated documents.
To add an income, go to the “Finance” section and click “New transaction”, then “Add revenue”. For each income you can enter the property, the type, the date, the payer, the amount and the VAT amount, plus the tenancy agreement, a description and the associated documents. Rents and security deposits generate their own documents.
When you create a tenancy, the security deposit set out in the agreement is recorded automatically as an income in the “Finance” section. This article explains how to record a deposit by hand, how to record the refund or a partial deduction, what to do when you keep the whole deposit, and the deposit protection and deduction rules.
Rentila produces a balance sheet to help you prepare your tax return, summarising the taxable income received, the deductible expenses and the taxable profit. You can filter by year, landlord or property and export the table. This article details every income and expense line, including managing agent provisions, loan interest and the statement of accounts.
