Linking - Link a property, such as a rental property, to an other income

The two income screens, Employment and Other Income, are normally used to show earnings of various sorts tracked by the individual, to assess the individual's tax liability. This is why these screens are defaulted only to allow for a single owner. However, you may show a rental income as being co-owned by linking the income to a co-owned property, in which case ownership of the income will receive the ownership settings (and timing) from the property.

The rental property should be entered into the plan on the Property/Assets screen. If the property is set with two owners (two people are ticked on that screen's People panel to the right), then simply link the income to the rental property.

To link a property to an income, such as a rental income: 

1. Go to the Property/Assets screen and select the rental property in the ledger on the right side of the screen.

2. Expand the Advanced Settings > Incomes panel.

3. Select Income:  In the drop-down list, select the rental income.

4. Click the Link button.

5. Click OK.

6. Click Add or Update button to save the change.

Notice that a link icon (a small chain link) appears next to the rental property in the ledger. Click this icon and the property's linked items will be shown, including the rental income, which you can click to jump to the Other Income screen.

Otherwise, return to the Other Income screen and select the rental income in the ledger, right.

You should see that income has inherited its owners from the linked property, as set on the Property/Assets screen. 

 

Rental income is reported by only one person in the plan

If you encounter a case where the property is co-owned and identified as such in Voyant but the income taxes are paid by only one of the two owners, then opt not to link the property to the rental income.

Instead, enter the rental income separately on the Other Income screen, as taxable income, with the appropriate owner selected.

Check the Survivorship panel to verify that the income survives the owner's death - i.e. is passed on to the survivor.

The key is to set the same start and end events for the income, on the screen's Time panel, that you have selected for the property to ensure that the income will end when the property is sold. This would normally handled automatically by linking the income to the property, however, in this particular case you only want the taxes to be charged to one owner, not both. 

If you have already linked the property to the income, you may still unlink it. 

1. Go to the Property/Assets screen and select the rental property in the ledger on the right side of the screen.

2. Expand the Advanced Settings > Incomes panel.

3. Select Income:  In the drop-down list, select the rental income.

4. Click the Unlink button.

5. Click OK.

6. Click Add or Update button to save the change.

 

 

The timing of property-linked incomes

When an income, such as a rental income, is linked to a property on the Property / Assets screen’s Advanced Settings > Incomes panel, the income will inherit the timing of the property. The start and end events of a property-linked income cannot be edited, which is intentional. By linking the timing of the property to the timing of the income, the assumption is that the income will end once the linked property is sold.

If you have an income that should begin sometime after the property is purchased or becomes active in the plan, then leave it unlinked from the property.