I'm looking for 'bookkeeping' help.
I have one company (partnership) which owns rentals (comp1). I have a second company (Scorp) which manages the properties (comp2).
I receive Section 8 payments in the name of the management company.
I have the management company pay all the bills on the rentals.
I use Quickbooks.
I have a mind block on how to expense the pass-through money as well as the bills the management company pays on behalf of company 1 so that I can show a true financial picture of the Management company for the IRS (and anyone else who wanted to know). Can you help?
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Hi Steve, I'm assuming you have 2 separate QB files, one for each company. Simply write a check from one to the other and make the deposit. You must also have separate bank accounts to make this work.
Hi Gita, Thanks for the offer I may be calling you.
Hey Dick, Yes I have two different company accounts and two different checkbooks.
My problem is that all my sect 8 checks come in under the mgmt EIN but all the expenses they pay are the PROP owner expenses.
So if $800 in rent comes in to a single operating acct
and the mgmt pays $500 mortgage pymnt
and then pays prop owner $300
The mgmt company has $0 income and $800 expenses EXCEPT
$500 of what is paid out is really a mort expense for the PROP owner, and is recorded that way in quickbooks.
So how do I expense that as a $500 payment to the PROP owner, and what do I call the $300 pass through payment to the owners
Right now, to me for the mgmt comp, it looks like
$500 mort payment expense for owner
$300 owner pymnt
$500 pass through money paid out on behalf of owner
I know I'm missing something but I can't figure it out.
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