Joint Rental Income FAQs

My husband and I share a rental income 50/50. The full amount is paid into my bank account, and I transfer his half to him. How should I record this in Clear Books?

In this case, the easiest method would be to code the whole rental payment to rental income, then code the transfer of 50% to your husband as a refund, also coded to rental income. Your husband can then code that 50% amount straight to rental income.

When a rental property is jointly owned, do we need to manually split every single income and expense transaction 50/50 and report them separately? Or is it possible to record 100% of the transactions and then split the reporting at the end?

Clear Books is a single-entity accounting system, so it's not designed to automatically split income and expenses between two people for reporting purposes. It's best practice for each person to record their own share of the income and expenses in their respective Clear Books account. This can be done by following the method described in the previous question for income, and by each of you recording your 50% share of any expenses.