I am using QBSE to document expenses for both my freelance job and Airbnb property. How do I separate them properly so I can get tax deductions for both?

linman415 · ‎February 17, 2020

Michelle_b · ‎February 18, 2020

I want to make sure you're able to separate the freelance job and Airbnb property into QuickBooks Self-Employed. You'll need to categorize the expense accounts so that both of them can get tax deductions. I'd suggest consulting your accountant to help you determine the appropriate expense accounts. Once verified, perform the steps below.

Go to the Transactions tab located on the upper left side.
Locate the expense, then click CATEGORY AND TRANSACTION and type Expense.
Choose the appropriate expense account.

To learn more about different account appears on various reports in QBSE, check out this article: Schedule C Categories breakdown.

Please browse this article: Pay Federal Estimated Quarterly Taxes. This link guides you on how to pay your estimated taxes via mail or online.

Don't hesitate to leave a comment below if there's anything else I can do for you. Have a good day!

linman415 · ‎February 18, 2020

Hi Michelle,

Thank you for the prompt response. Mine looks a little bit different than what you have shown, instead of "CATEGORY AND TRANSACTION", mine is shown as "CATEGORY". Also could you please clarify want do you mean by "Choose the appropriate account"? I was able to categorize the transactions, however not to separate the expenses from Airbnb to my other expenses.

An example would be to allocate different proportions of utilities cost to Airbnb and home office. Is it sufficient to simply assign it to "utilities" versus "utilities - home office" categories? And how about categories such as "advertisement" that don't separate from the business to the rental property?

ChristieAnn · ‎February 19, 2020

Hi there, linman415.

I'm here to add clarifications about the information provided above. The option in choosing a category should be Category and Tags. To have that option, you'll need to turn on the Tags feature under Labs. And for step three, my other colleague is trying to say is choose the appropriate category.

Currently, QuickBooks Self Employed doesn't have the option to separate different expenses. This is because one QBSE subscription is for one business.

The cost of for utilities (phone, electricity, water) for your home when you have a home office. All other business utilities should use the general UTILITIES category instead. Costs for expenses for your home office that don’t fit into other home office categories. Examples might be neighborhood association dues or home security fees.

I suggest consulting an accountant to assist you in categorizing the advertisement. You can also refer to this article to help you further about Tax deduction: TurboTax Support.

Please check this article for addition information provide above and what are the transactions automatically categorize as home office expenses: Schedule C: Home office expenses.

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

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I am using QBSE to document expenses for both my freelance job and Airbnb property. How do I separate them properly so I can get tax deductions for both?