Tag: Tax Time

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

Posted on By Mike Butler

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

Please log in to view more of this post
INVESTOR BOOKS, Borrow Money

How To Use Repairs and Capitalized Expenses in QuickBooks Pro

Posted on By wizard

QUESTION:

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 cashflow in Investor Books PRO when I do a report, I put these fixup costs as an expense (initially).   I do this under "repairs and maintenance"

The fixups will eventually be transfered and recharacterized as a capital expense at a later date thus in the meantime allowing my cashflow 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

Please log in to view more of this post
HOW TO VIDEOS, INVESTOR BOOKS, Capitalized, Repairs, Year End

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

Please log in to view more of this post
INVESTOR BOOKS, Multiple Entities

My Reports Don’t Look Right In QuickBooks Q&A

Posted on By Mike Butler

QUESTION from Sharon:

Hi Mike

I am the owner of your Investor Books PRO System software and have attended one of your seminars in KY a few years ago.  I did have a girl doing my books who is no longer helping me and I am STUCK!  I have a couple of questions that I can not seem to find the answer...

  1. How do I get an accurate report on what I actually took in on a property?  I can go to income by property report - and that's fine - but when I compare that to my the income detail report - the numbers don't match?  What I billed out isn't important - it is what I actually took in (by property) that I am looking for?
  2. Once I can get my hands on the real amount of money I took in for each property - how do I take that income and  put it into Investor books so that I can see what my real bottom line is - ie income vs expenses...

I would appreciate it if you could point me in the right direction....

Thank you
Sharon B.

Please log in to view more of this post
INVESTOR BOOKS, Troubleshoot