Author: Mike Butler

QuickBooks For Real Estate – Repairs vs. Capitalized

Posted on By Mike Butler

QUESTION from Steve:

Hello Mike,

I understand your reply of repair versus capital expense so my question must not have been clear…

When I buy a house to resell that will need some repairs, these repairs are a capital expense as the property is not in “service”.

To properly see my cash flow in Investor Books PRO when I do a report, I put these fix up costs as an expense (initially).   I do this under “repairs and maintenance”

The fix ups will eventually be transferred and re-characterized as a capital expense at a later date thus in the meantime allowing my cash flow report to provide useful information for me as an investor.

My question is when do I transfer this to the asset?

Thank you Mike,

Hope that is more clearer-er

Steve

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INVESTOR BOOKS, Capitalized, Repairs, TENANT TRACKING

How Depreciation Benefits Real Estate Investors and Business Owners – Simple Version

Posted on By Mike Butler
Special Report – How Depreciation Benefits Real Estate Investors and Business Owners
First of ALL: Do NOT Allow Yourself To Feel Bad about not knowing.

When I began my real estate business, I did not understand “depreciation” until I saw the huge benefits at tax time.

Then I really began to pay attention.

Depreciation: A non-cash expense that reduces the value of an asset as a result of wear and tear, age, or obsolescence. Most assets lose their value over time (in other words, they depreciate), and must be replaced once the end of their useful life is reached.

There are several accounting methods that are used in order to write off an asset’s depreciation cost over the period of its useful life.

Because it is a non-cash expense, depreciation lowers the company’s reported earnings while increasing free cash flow.

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INVESTOR BOOKS, Depreciation

My Computer Got A Virus! What About My QuickBooks Pro Files?

Posted on By Mike Butler

QUESTION:

I ordered your book/cd tenant tracking module which was a great help but I’ve recently got a virus on my computer and had to switch to my other one. I’m having a problem restoring all the old files.
 
I tried install everything but can’t seem to restore any of my old files back  to the tenant tracking module.
 
Can you help me out?
 
Art C.
 
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INVESTOR BOOKS, TENANT TRACKING

QuickBooks For Real Estate – Setting Up Multiple Entities

Posted on By Mike Butler

QUESTION from Steve:

Hello Mike,

Would you please give me some guidance.

To make sure I am of the correct mindset in reading the Investorbooks manual … on page 86 you mention if we are using single member LLC’s (which are a pass through entity as fax as the tax prep) we set them up on one set of Books … then does that mean that if we are not using single member LLC’s and instead have a Corp that files its own return and a Multi-member LLC(s) that files its own 1065 that these will each have their own set of Investorbooks?

And … if the Corp is on a fiscal year versus Calendar year end for taxes, does that make a difference as the way we would log the Fixed assets may be better using Fiscal Year versus Calendar year which may cause havoc with the other entities.

Thank you Mike,
Steve

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INVESTOR BOOKS, Multiple Entities