with LIVE Q&A following
Category: INVESTOR BOOKS
IRA Rollover Tax Update from J. Michael Grinnan CPA
How Do I? Follow the new-for-2015 one-IRA rollover-per-year limit?
As most people know, a taxpayer can take a distribution from an IRA without being taxed if the taxpayer rolls over (contributes) the amount received into an IRA within 60 days. This tax-free treatment does not apply if the individual rolled over another distribution from an IRA within the one-year period ending on the day of the second distribution.
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Tax Updates for Real Estate Investors from Mike Grinnan CPA
POST Election Congress Grapples with Extenders as Lawmakers Plan for 2015
The results of the mid-term elections create a new dynamic in Congress with Republicans poised to take control of both the House and Senate in January. Prospects for tax reform may have brightened for 2015. In the meantime, the lame-duck Congress must deal with some urgent tax bills, most notably the tax extenders.
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QuickBooks Q & A – Real Estate – 3 companies, Invoices, Receipts, Tenants, Deposit
QUESTION from William:
Hello Mike,
My name is William and I am Jim’s bookkeeper since February. Since that time, I have updated the QuickBooks company files for his three companies and have been processing invoice payments through the QB accounts payable system and maintaining the cash balances, but we have some catching up to do on the accounts receivable side. I have several months worth of invoices to post and receipts to receive against these invoices (right now the receipts are just booked as deposits hitting Cash and Rental Income, A/R account is not being used yet). With regards to QuickBooks Pro, should I enter the invoices for the tenants using QuickBooks and process the payments using the normal A/R process, or do I need to enter the invoices using QuickBooks Pro (basically a chicken or the egg question, does QB feed from QB Pro or visa versa)?
Thank you,
William
-Pennsylvania
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Selling Real Estate When Seller MUST Bring Money to Closing
QUESTION from Stephen:
Stephen asks:
“Mike, I am selling a property for $123,000 and unfortunately I have to bring a check for $3,000+ to the closing.
I am pulling my hair out trying to enter this HUD 1 Settlement Statement into Investor Books. Please Help Me, Stephen”
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QuickBooks Real Estate – Buying 3 Properties On One HUD 1 Settlement
QUESTION from Kyle:
Hi Mike,
Love the software still and have a unique question.
I just purchased 3 properties from the same seller and we did it all on one HUD. I know I need to enter the HUD exactly as I received it, but the question is I need to separate the properties because we are going to be selling them separately and splitting the profit on each one.
Should I just enter the HUD as it is, then make separate accounts for each properties so they show up separately for when we sell them and have to enter a selling HUD?
Obviously the HUD we used to purchase the 3 properties will have a big balance on it even after we sell 1 property. It seems it may be tricky to balance this all out.
Hope I confused you with this. Thanks.
Kind Regards,
Kyle J. Weimer
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QuickBooks Question on Installment Sales and Statements
QUESTION from Mark:
(italicized green are Mike’s comments)
Hi Mike,
Hope you had a nice Christmas.
Two quick questions.
1) Loans – Land Contract. (Contract for Deed)
Which accounts are used?
I created a new item (Loan Payment under Other Charge) and (Account Uncategorized Income) or do I just use Rent like we do for tenants.
2) Statements Email & Print
Most of my tenants have a email, but several do not.
When I try to email all statements it will not allow me to go forward without having all of them with a email.
If you have to do it separately what is your procedure?
I sure want to save the postage.
—
Respectfully,
Mark Mullet
Your Real Estate Consultant For Life
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Accelerating or Deferring Income / Deductions as Part of a Year End Strategy
The arrival of year end presents special opportunities for most taxpayers to take steps in lowering their tax liability. The tax law imposes tax liability based upon a “tax year.” For most individuals and small business, their tax year is the same as the calendar year. As 2013 year end gets closer, most taxpayers have a more accurate picture of what their tax liability will be in 2013 than at any other time during the current year. However, if you don’t like what you see, you have until year end to make improvements before your tax liability for 2013 is permanently set in stone.
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QuickBooks Real Estate Video – How To Create Balance Sheets for Entities
8 minute On Demand Video shows you how to create Balance Sheets for multiple entities
QUESTION from Darren:
Thanks Mike!
I have a couple of follow up questions. For the LLC, single or multiple, are we suppose to classify every item regardless whether it is a income statement item or a balance sheet item?
Also, can I run a balance sheet just for LLC #1 that will not show LLC #2 balance sheet items? This is where my issue comes in, as my balance sheet is not in balance when I run a report just for LLC #1.
Darren
Joe’s partner
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QuickBooks for Real Estate – Wholesale Deal
QUESTION from Kyle:
Hi Mike,
Love IBP!! (Investor Books Pro System)
I’ve been doing some co-wholesaleing deals where as I receive a 30% check of our NET wholesale fee.
How would you prefer to enter that into IBP beings that I don’t have any closing statements or anything?
Which label/class would you put on it so it records it as profit correctly?
Thank you sir.
Regards,
Kyle Weimer
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