|
PropertyPlus TIPS AND TRICKS -
August
2008 |
Setting up Syndicate (Multiple) Property Ownership in PropertyPlus
In the current
marketplace we have seen a growing trend of property owners going into
partnerships and PropertyPlus has the facility to help you get that set
up.
Do you have
properties that have more than one owner? Need to send a copy of a
statement to other people? Want to report Rental income to more than one
person? If so the Syndicate or Multiple owners’ screen is where you set
up the details of ownership.
PropertyPlus
allows you to define different percentages (or ratios) of ownership,
this allows one owner to own more shares than another does.
Setting up
Multiple Owners:
Follow the
procedure below if you wish to set up multiple owners or syndicates.
-
Set up
separate owner records for each of the owners.
-
Set up an
Additional Owner Record for the Syndicate, use the Property Code as
the Owner code and in the Name put “Syndicate for – Property –
EXAMPLE SYNABC123
-
In the
Syndicate Owner – check the “Syndicate” field on the General Tab.
-
Click on the
Syndicate Tab and complete the fields as follows:
-
Owner:
Select the first owner of the property
-
Assigning
numeric proportions in the following fields:
Each of the next four fields contain a number, default is 1.
This number represents the Number of Shares this owner has in
the Property. If one owner has twice as much interest in the
Property than the rest then they would have 2 shares to the
others 1.
-
Ratio:
The number of shares in the property if owned equally - leave at
1 for each owner.
-
Rev:
The ratio of Rental Income should be the same as the Ratio.
Exceptions might be if two owners own the property, but you want
to send all the money to one of them - set the owner who will
not receive the money to 0.
-
Purch:
As above but for expenses, if the property is in a negative or
below target situation, who should be responsible for the
shortfall? Should be the same as the Ratio for equality or
nominate the proportion you require
-
1042:
Ratio of reporting for 1042 & 1099, should be the same as the
Ratio unless you wish to report more income to one owner than
another.
-
The Main
owner:
Each Syndicate MUST have a main owner, usually the first one
entered. Check the box next to the line for the Main owner.
Examples:
In the following
table, we list some real life examples and the way to set them up.
Example
1:
A Father and his two sons own a house. The father has 50% and each son
has 25%. All the revenue, expenditure is equal, as is the 1099
reporting at the end of the year. The Father is the main owner.
Owner
Ratio Rev Purch 1042 Main
Father
2 2 2
2 Yes
Son 1
1 1 1
1 No
Son 2
1 1 1
1 No
Example 2:
Two Brothers own a house. They each have 50%. During the year the older
brother receives all the income and makes up the expense shortfall. At
the end of the year for 1099 reporting the income is shown as 50/50.
Owner Ratio Rev Purch 1042
Main
Older
Brother 1 1 1
1 Yes
Younger Brother
1 0 0 1 No
Example 3:
A Brother and Sister own a house equally, all transactions are split
50/50 and the Sister is the main owner.
Owner
Ratio Rev Purch 1042 Main
Sister
1 1 1
1 Yes
Brother
1 1 1
1 No
Example 4:
An owner wants a copy of his statement to go to his son, you agree to do
this for them. The son has no financial interest in the house but needs
a copy of the statement.
Owner
Ratio Rev Puch 1042 Main
Father
1 1 1
1 Yes
Son
0 0 0
0 No
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