Q&A: Where to Enter Your Equity and Proper Use of CASH from Me

Posted on By Mike Butler

Where to Enter Your Equity and Proper Use of CASH from Me

  • with a dose of Crazy Advice from an Incompetent CPA

QUESTION from Cassandra:

Hi Mike,

I’m really enjoying your QuickBooksForInvestors system!!

Here’s my question….

I have heard you say you don’t bother with the Owner Equity account cause you let your CPA deal with that.

You say you use the “Cash from ME” (Long Term Liability) account when you infuse money into your business.

For short term interest-free loans to my business, this concept makes sense to me. But, if I infuse money to buy a property, I believe my CPA will complain because this Long Term Liability has no terms such as interest rate and loan period.

I’m also reading the IRS can easily challenge this and force me to treat it as equity.

My LLC expects to pay this infusion back once I sell the property several years down the road. So, how do I justify using a Long Term Liability account when there are no loan terms?

Also, how do I explain this showing up on the balance sheet as a long term liability when it is not a loan with terms?

Thank you,
Cassandra

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INVESTOR BOOKS, Borrow Money

Earnest Money Paid To You When Selling a Property

Posted on By Mike Butler

How to Properly Enter
a $2,000 Earnest Money Check Paid to You

If You are a Licensed Real Estate Agent, You will deposit it into your Broker’s Escrow Account

QUESTION from Chuck: 

Hey Mike,

I am doing a wholesale deal. I will be doing a double close on it.
I received a $2,000 non-refundable deposit (EM but paid directly to me).

How do I enter a transaction like this. I tried to look it up on the videos but the link is broken. Thanks for the help

I tried to look it up on the videos but could not find this one.

Thanks for the help
Chuck C

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HOW TO VIDEOS, INVESTOR BOOKS, Closing Statements, Earnest Money, Escrow Accounts, Selling

QuickBooks Questions about Previous Transactions

Posted on By wizard

QUESTION from Michael J.

I just got your program in December.

I have 15 units.
– 2 single dwellings,
– 2 duplexes,
– 1 4plex,
– Victorian with 5 units.

I currently use Excel documents to keep track of stuff. tax season is not fun for me or my CPA.

I agree, this will make your tax time a breeze.. the hardest part is your transition and getting all set up properly

Would it make sense for me to input this year’s stuff from January to December.

Realistically how long would it take me to do that?

Would it make year-end enough easier for me and my CPA?

What would you do?

Congratulations Michael

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REGISTERED USERS ONLY, STEP 7 - Entering Old Transactions, YEAR END STUFF TO DO

Paying Bills

Posted on By Mike Butler

QUESTION from Anthony:

I have a question I cannot find the answer to.
I get bills in on properties, (Ex. Electric bill). In the training documentation it says only to use the bills feature for things like Home Depot credit accounts.

What will go wrong if I use the Bills feature for all bills that come it. I ask b/c it helps me remember what is due.

Is there a better way to remember bills?

Some are monthly, some are not….Ex. new electric service at a house I am re-habbing. I may only have the service for a couple of months but need to remember to pay it.

I know I can use the memorize bill feature, however this does not give me a rundown of what I need to pay like the bill feature does. As my business gets bigger I may not be able to remember everything that is due.

Thanks,
Anthony

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INVESTOR BOOKS, Invoices, Loan Money