How To Setup QuickBooks for a Real Estate Rental LLC
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?
- Good for beginners. Basic understanding of rental property business and accounting.
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
Jason is a U.S. and international tax advisor with over 10 years of U.S. and international tax experience. Jason is a licensed CPA and tax attorney in the State of Florida, and his practice is primarily focused on the U.S. and international tax issues for global entrepreneurs.
Jason works with individuals and companies that operate businesses across borders. He advises on transfer pricing issues, repatriation of offshore earnings, withholding tax implications, tax treaty benefits and positions, asset protection strategies, and estate tax minimization for U.S. and nonresident taxpayers.
He also assists individuals and businesses with their annual U.S. federal and state tax return filing obligations. He is experienced in preparing the following international tax forms:
- Forms 5471, 5472, 8858, 8865, 8938 & 926
- Foreign Bank Account Reports (FBAR)
- Forms 706, 706-NA and Form 709
- Entity classification elections Form 8832 & 2553
Jason advises non-U.S. corporations and individuals on issues related to U.S. trade or business risks, U.S. permanent establishment risks, effectively connected income (ECI) issues, U.S. FDAP withholding, and U.S. FIRPTA withholding for U.S. situs real estate properties.