Real Estate

Accounting Practices for LLCs: What Every Real Estate Investor Should Know

"What new (and sometimes experienced) investors don’t realize is that there are specific sets of journal entries that must be recorded when you move an asset into an LLC or purchase an asset via yo...

  • Updated 9 months ago by vince
Chart of accounts for RE

It's a good idea to follow the same list listed on https://www.irs.gov/forms-pubs/about-form-8825 (for company tax returns) or https://www.irs.gov/pub/irs-pdf/f1040se.pdf (for individual tax retur...

Journal Entry for repairs from security deposit

Repairs using a security deposit is not an expense DR security deposit, CR Bank Account or if not paying vendor for repairs immediately DR security deposit, CR payable (when you get the bill from t...

  • Updated 11 months ago by vince
What closing costs can be deducted from a rental property purchase

The only deductible closing costs are those for interest, and deductible real estate taxes. Other settlement fees and closing costs for buying the property become additions to your basis in the pro...

  • Updated 11 months ago by vince
Depreciating individual appliances vs adding to cost basis

"If you install a new refrigerator in a rental property, you could choose to depreciate it over five years instead of considering it an improvement and adding it to your cost basis. In many cases, ...

Setting up your accounting after purchasing a personal property

This is for a personal residence and not for a rental property There are many different types of fees and charges a home buyer must pay to get a loan and complete the purchase. For tax purposes, th...

  • Updated 11 months ago by vince
Calculating depreciation for property improvements

Calculate Basis Get your Settlement Statement and Home improvement bills Subtract the following closing items on the settlement statement from the total purchase price: loan origination fee, points...

  • Updated 11 months ago by vince
Depreciation schedules

Useful life of common assets: Appliances, carpeting & furniture: 5 years Office furniture & equipment: 7 years Fences & roads: 15 years Residential rental buildings, structures, furnaces & water pi...

  • Updated 11 months ago by vince
IRS depreciation rules

https://www.irs.gov/publications/p946#enUS2018_publink1000107378 How Do You Treat Repairs and Improvements? If you improve depreciable property, you must treat the improvement as separate depreciab...

Deducting Improvements vs. Repairs on Your Taxes

“Example of How to Deduct an Improvement You made an improvement worth $5,000 to your property. Therefore, you must deduct it over a set depreciation schedule. We will use a depreciation schedule o...

Quickbooks for multiple rentals

set up your chart of accounts to map directly to your IRS forms https://www.youtube.com/watch?v=xwO879TAJuw

Bank accounts for Rentals

2 accounts, one operating account and one escrow account use account software with a chart of accounts to track each property When you need personal money, write a check from your operating account...

  • Updated 12 months ago by vince
wave accounting for multiple rentals

“We have consulted with an accountant that works for Wave, and he recommended creating separate companies for each property, all under the same Wave account. So we have multiple companies like this...

  • Updated 12 months ago by vince
Journal entry for closing costs when purchasing a property

Closing costs simply increase your basis in the property and are not an expense "Add a home’s purchase price to the closing costs, such as commissions, to determine the home’s total cost. Write “Pr...

  • Updated 12 months ago by vince
Setting up mortgage payments in accounting software

https://quickbooks.intuit.com/learn-support/en-us/chart-of-accounts/set-up-a-mortgage/00/202617

  • Updated 12 months ago by vince
RE guidance for allowed expenses and bookkeeping from the IRS

“You may not deduct the cost of improvements. A rental property is improved only if the amounts paid are for a betterment or restoration or adaptation to a new or different use. See the Tangible Pr...

RE Depreciation

“ Depreciation is the process used to deduct the costs of buying and improving a rental property. Rather than taking one large deduction in the year you purchase (or improve) the property, deprecia...

IKEA Kitchen Planning

You can design and get a great kitchen from IKEA delivered to your home. I think it's a lot easier, nicer, and cheaper than what most people assume. And the fact that it's IKEA means that the cabin...

  • Updated about 1 year ago by vince
Old people housing

federal govt gives $ per unit portion of rent goes to reserves Types of old people housing intentional community of elderly (just a large house) or a campus like https://atlanticheightsretirement.c...

How to get your real estate license in California

Be at 18 years or older Complete 135 hours of required Pre-Licensing education Find a licensed CA real estate broker to work under Apply for the state Salesperson Exam and submit a fingerprint and ...

  • Updated over 1 year ago by vince