Archive for 'Tax Time'

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.

From Mike

Click to Access Video or Read More

Everyone in business must keep records. Among other things, good records will help a business prepare the business tax returns, and will support items reported on tax returns. Taxpayers also must keep their business records available for inspection by the IRS.

In order to claim any deduction, a business owner, like any taxpayer, must prove two things: Click to Access Video or Read More

How to add 5 years of tax time reports in 5 minutes or less.

QuickBooksForInvestors.com

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

 

ANSWER:

Great Question Steve! This is probably one of those questions most investors are afraid to ask.

For starters, as an investor and business owner, YOU MUST KEEP YOUR FINGER ON THE PULSE OF YOUR BUSINESS! – No Exceptions! No longer can you borrow your way out of a cash flow problem.

Knowing this up front, you MUST be able to push a button and see a real, true blue, “cash flow” report.

This “Cash Flow” report drives many bookkeepers, accountants, and CPAs BONKERS because they have been trained to keep your books in Ready For Tax Time fashion. Their professionally trained method makes it totally impossible to generate a true “Cash Flow Report.”

Keep in mind, the way they do your books is proper for tax time; however, you and I have not been trained in their 5 star bean counting arena.

The simple version is Investor Books PRO makes it simple and easy for investors and business owners.

ALL of your capitalized “expenses” get entered using the Click to Access Video or Read More

QUESTION:

Hi Mike,

I have a question regarding entering the HUD info into QuickBooks for a newly purchased property. I’ve watched your videos on the subject and they were extremely helpful-Thank you, but i can’t seem to figure out the answer to the following question.

What do you do with the expenses relating to the purchase of the property that happen outside of the HUD.  For example… The inspection costs, the Hard Money appraisal that I paid for, and even a foundation repair that was paid for outside of the Hard Money loan Holdback but happened during the rehabbing of the property. It seems these are technically part of the cost of the Asset and should be applied to the real estate asset account.

Should those be entered as part of the asset account or should they be applied to other accounts such as a repair account?

Also, I would love to see you do a video showing the process of going from a Hard Money loan to Refinancing out of that loan and what that process would be like. This is essential what I’m trying to figure out with my questions above.

Thank you Mike,

Bryan T.
Dallas

 

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ANSWER:  

Great question Bryan. For starters, let’s copy and paste your question below and we will break it down into baby steps.

I have a question regarding entering the HUD info into QuickBooks for a newly purchased property. I’ve watched your videos on the subject and they were extremely helpful-Thank you, but i can’t seem to figure out the answer to the following question.

What do you do with the expenses relating to the purchase of the property that happen outside of the HUD.  For example… The inspection costs, the Hard Money appraisal that I paid for, and even a foundation repair that was paid for outside of the Hard Money loan Holdback but happened during the rehabbing of the property. It seems these are technically part of the cost of the Asset and should be applied to the real estate asset account.

Great question Bryan. I highly recommend you review the On Demand Video from the all day workshop. Here’s the link: https://quickbooksforinvestors.com/training-replay/5-live-training-replays/ This is covered in detail. Just check out the Investor Books Pro video.

Here’s your rule of thumb. “Anything that does not happen Click to Access Video or Read More

President Signs Repeal of Expanded 1099 Requirements

APRIL 14, 2011

On Thursday, President Barack Obama signed into law the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (HR 4; 1099 Act), which repeals both the expanded Form 1099 information reporting requirements mandated by last year’s health care legislation and also the 1099 reporting requirements imposed on taxpayers who receive rental income enacted as part of last year’s Small Business Jobs Act (PL 111-240). The Senate approved the bill on April 5, and the House voted in favor of it on March 3.

 

Mike Grinnan, my CPA sent me this email..

 

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