How To Setup QuickBooks for a Real Estate Rental LLC

Name: How To Setup QuickBooks for a Real Estate Rental LLC
Rating: 4.6 (37 reviews)

Everything you need to know to get started in QuickBooks for your Real Estate Rental LLC

Created byJason Knott

Last updated 8/2021

English

English [Auto],

What you'll learn

How does an LLC with a rental property keep its books and records?
How does an LLC taxed as a partnership setup its chart of accounts?
How to allocate the purchase price of real estate between the building and land?
What assets are depreciated for federal tax purposes?

Course content

2 sections • 17 lectures • 2h 19m total length

Introduction2:30
Set up a QuickBooks file for a rental real estate LLC, establish chart of accounts, record initial funding, real estate purchases, rental income, expenses, and year-end closing entries.

Course Topics2:56
In this video we will cover the course topics:

1. LLC tax & accounting principles based on ownership and tax treatment
2. Chart of accounts for real estate rental businesses
3. Initial accounting entries
4. Recording the real estate purchase
5. Entering rental income and expenses into the QuickBooks file
6. Recording the capital distributions to the LLC members
7. How to record closing entries for the year
Rental Real Estate LLC Tax Principles8:07
We cover the rental real estate tax principles for LLCs. Depending upon the LLC ownership and tax structure, the entity may be treated as either a partnership, S corporation, C corporation, or a disregarded entity. This QuickBooks file will be set up for an LLC taxable as a partnership.
Rental Real Estate LLC Accounting3:00
Explore rental real estate accounting at the LLC level and how tax structure affects profit and loss and income allocation, including entity level taxes.
Chart of Accounts for Real Estate LLC9:15
Create Chart of Accounts in QuickBooks4:36
Create a chart of accounts in QuickBooks desktop 2018 for Real Estate Ventures, LLC, establishing assets, liabilities, equity, income, and expenses, plus bank, building, land, mortgage, and loan entries.
Initial Accounting & Journal Entries for a Real Estate LLC2:36
Explore accounting entries for a real estate LLC, from opening a bank account and owner contributions to recording property purchase with land and building allocation, mortgage entries, and tenant deposits.
Opening the Bank Account and Recording Initial Entries3:39
Open the real estate ventures LLC bank accounts in Delaware, record initial entries, and capture member capital contributions and a short-term member loan in QuickBooks.
Record the Initial Bank Account Transactions Into QuickBooks18:22
The LLC Purchases Its First Property6:00
Learn to record a real estate purchase in QuickBooks using a HUD statement, including calculating cash outlay and recording deposits, loan proceeds, and settlement charges.
Record the Escrow Payment and Purchase of Real Estate12:45
Record the escrow deposit and real estate purchase in QuickBooks, debiting deposits as current assets and posting closing entries to reflect mortgage payable, building versus land allocation.
Adjusting Journal Entry to Record Value of Land and Building9:24
Allocate the purchase price between building and land using fair market or assessed values, then record a journal entry reallocating to land and supporting depreciation for residential rentals.
Income and Expenses for Real Estate LLC3:06
Record Income and Expenses into QuickBooks26:56
Record income and expenses in QuickBooks by splitting deposits into rental income and security deposits, and reconcile the balance sheet and income statement.
Recording Distributions to the LLC Owners11:55
Record Closing Entries at the End of the Year13:40
Learn how to record year-end closing entries for a partnership LLC, rolling profits, losses, and owner contributions and distributions into capital accounts, with entries posted the day after year-end.
Thank you!!1:01
Thank you for enrolling and completing the modules; review the videos or materials if anything isn't clear, and reach out via email or the firm's website.

Requirements

Good for beginners. Basic understanding of rental property business and accounting.

Description

Many investors are looking to break into the real estate market to diversify their investment portfolio.

Generating income from rental real estate properties is a great investment opportunity, but you must always choose the property wisely, and structure the investment to maximize asset protection and tax savings for the owners.

Most investors in the U.S. will create a U.S. LLC to purchase the property and conduct their rental business. The LLC is a great entity because it provides asset protection and legitimacy to your business.

In our example, we have three friends that created an LLC to purchase a single-family home and rent the home to a tenant.

They also borrowed funds from a bank to fund a portion of the purchase. We will show you how to setup your QuickBooks file and record all of the essential entries to get your rental real estate business started!

In this course guide, we will cover the following topics:

1. LLC tax & accounting principles based on ownership and tax treatment of the LLC
2. Create a chart of accounts for your real estate LLC
3. How to record the initial accounting entries in the QuickBooks file
4. How to record the purchase of the single-family home with a mortgage from the bank
5. How to enter and record income from tenants and the rental expenses
6. How to record cash distributions to the LLC owners at the end of the year
7. What are the closing journal entries at the end of the year

This course is designed to get your QuickBooks file up and running for your real estate LLC. We hope you enjoy!

Who this course is for:

Beginners in real estate rental businesses

How To Setup QuickBooks for a Real Estate Rental LLC

What you'll learn

Explore related topics

Course content

Introduction1 lecture • 3min

Course Materials16 lectures • 2hr 17min

Requirements

Description

Who this course is for: