Disability Rent Increase Exemption (DRIE) is one of the benefits that your tenant may get. For the landlord it means that any rent increase over the certain amount will not be paid by the tenant, but instead reimbursed by the city in the form of tax credits. Here’s how to book it.
Create a new Discount item called DRIE, use Taxes Payable (Other Current Liability) account.
When you create an invoice, use item Rent (Income Account) and enter tenant’s legal rent. Next enter item DRIE and enter the amount of monthly DRIE benefits. Since it was set up as discount item, invoice total due will show the portion of rent due from tenant.
Whenever you receive your next tax bill, go to Taxes Payable (Other Current Liability) account register and enter the amount of property taxes. DRIE abatement will be in Overpayments/Credits section of the bill. Make sure it matches your records.
If you pay the bill yourself, just create a check for the amount due and use Taxes Payable (Other Current Liability) account. This should bring your Taxes Payable to zero.
In case the bank pays property taxes from escrow account, go to Escrow (Other Current Asset) account register and create new entry decreasing Escrow for the amount of taxes paid against Taxes Payable (Other Current Liability) account.
Senior Citizen Rent Increase Exemption (SCRIE) is booked the same.