Using Debits & Credits to Record Transactions

When you record an accounting transaction, you need to make a debit to one account and a credit to another. And the total amount you debited should also be equal to the amount you credited. If you’re not familiar with the rules of debit and credit, the whole process can be tricky. If you’re new…

Accounting for 1031 Like-Kind Exchange

Section 1031 exchanges are not new. But the rules have changed over time.  A Section 1031 or like-kind exchange is an income tax concept. It applies when you swap two real estate properties with the same nature or character. Even if the quality or grade of these properties differs, they may still qualify for like-kind…

Why It Still Makes Sense to Invest in Real Estate

Investing in real estate has been one way to build wealth. And it makes sense to buy real estate even in this decade —if you are looking for a long-term investment.   The real estate market had its ups and downs, but, overall prices have increased over the years. This is even true for the…

How to Record Operating Lease vs Capital Lease in Quickbooks

Are you renting a property or equipment for your business?  Accounting for a lease can be tricky given the recent changes in accounting for these transactions.  Now, you can still account for a lease in two ways—as an operating lease or a capital lease.  Operating Lease Vs. Capital Lease The main difference between an operating…

How to Use Quickbooks for Real Estate: The Basics

Quickbooks is a convenient tool for real estate businesses. Since there are many types of businesses in real estate, your Quickbooks set up will depend on what your exact industry is.  If you are a real estate agent, you may have different accounts compared to someone who is renting out properties or flipping properties. Here’s…

What is the Like-Kind Exchange Form 8824 All About?

Are you selling real property with plans of buying a new one of the same kind? If so, you may be able to defer capital gains tax through a like-kind exchange that you need to report in your Form 8824. What is a like-kind exchange? Taxpayers who exchange real property with the same nature or character…

Form 5471: What Is It and Do You Need to File One?

Are you a U.S. shareholder of a foreign corporation? If you have been diligently filing all your returns and disclosures, you may be familiar with Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations. Form 5471 an information returned filed along with the income tax return of covered individuals. Generally, individuals…

What Every New Employer Needs to Know About Form 941

If you’re a business owner, you probably know about Form 941. But if it’s your first time to start a business, you may be confused with all the tax forms you need to deal with. So, here’s a primer on Form 941, the quarterly form you probably need to file when you hire employees.  What…

How to Add Credit Card Charges in QuickBooks

Most companies use credit cards to pay for supplies and services. And as a business owner, you need to know how to record those credit card transactions in QuickBooks. How exactly do you do that? When you’re using QuickBooks and most of your expenses are paid using credit cards, the process is much easier. Before…

Five Simple Tax Prep Tips Before Time Runs Out

The tax year is almost over! Aside from starting to put your books to order, it pays to learn some year-end tax prep tips that can reduce your tax bill. Staying up to date with your taxes is a must for every business owner. Although you have a few months ahead of the next tax…