Charge sales tax on rent

Some states require sales tax on rental income. In UnitConnect, sales tax is switched on for a property first; then each tenant in that property is either taxed at the property's rate, taxed at a custom rate, or not taxed.

Before you start

The property must be subject to sales tax. Turn this on in the property's settings — see Property settings. If the property isn't subject to sales tax, the tenant settings below don't appear.

Set sales tax for a tenant

1. Open the tenant and click the Details tab.
2. In Tenant Info, find Sales tax and click Edit.
3. In Edit sales tax, choose:
   • Off — the tenant isn't charged sales tax.
   • Based on property — the tenant is charged the property's rate, shown under Rate (from property).
   • Custom — enter the tenant's own Custom rate as a percentage.
4. Click Save changes.

Set sales tax when creating a tenant

In the Create a tenant wizard, on the Lease & Rent step, the Pass-throughs & taxes table has a Sales tax row for properties that are subject to sales tax. Choose Off, Based on property or Custom there.