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Rldonaldson
Level 1

quickbooks online question

Hello!  I am new to using QB online, and am stuck on entering in some transactions.   My company is a project management company and collected income from a short term rental on behalf of a customer whose home we were managing.  HomeAway paid us directly for the complete rental amount and that amount deposited in to our business account.  We paid sales tax on the amount to the state and then deducted expenses like cleaning fees.  The net income was then divided 75% to the client and 25% to us as our fee.  We wrote a check for 75% of that net income to the homeowner/customer and kept 25%.  

 

How do I set up and then record the flow of this transaction in Quickbooks so that my accounts reconcile and I don't show the total amount as income on the p&l statement?  The real income to us was only 25% of the total.  I hope this makes sense.  Thank you for your help!! 

Solved
Best answer April 12, 2020

Best Answers
Rustler
Level 15

quickbooks online question

Pay the expenses as you usually would.

Receive the rent using a service item that is linked to a liability account

Cut the check for the payment to the owner
line one: liability account, full amount received
line two: sales tax payable, and the amount as a negative number
line three: rental expense account, and the amount as a negative number
line four: your commission income account, and your income amount as a negative number.
save and print.

The owner will be subject to a 1099-misc at year end.

View solution in original post

2 Comments
Rustler
Level 15

quickbooks online question

Pay the expenses as you usually would.

Receive the rent using a service item that is linked to a liability account

Cut the check for the payment to the owner
line one: liability account, full amount received
line two: sales tax payable, and the amount as a negative number
line three: rental expense account, and the amount as a negative number
line four: your commission income account, and your income amount as a negative number.
save and print.

The owner will be subject to a 1099-misc at year end.

View solution in original post

Rldonaldson
Level 1

quickbooks online question

Thank you, super helpful.

 

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