Entering rental property as fixed asset in QBO

dmckinney1003 · ‎December 16, 2020

I am setting up a company that owns property and rents it out. I have not been able to figure out how to set up the property as an asset (separating the value between building and land). Every time I try to enter the property's basis, I get a message saying I can't do this due to the date being prior to closing??? I've tried using the date the property was acquired (May 2019) and I've tried using today's date and still get the same message. So now I have an account for the property but the value is 0.00. I tried doing a journal entry to enter the value but got same message. I don't know what else to do. There is a mortgage on the property and I have entered that with no problem. Can anyone tell me what I am doing wrong????

Candice C · ‎December 16, 2020

I've got you covered, @dmckinney1003.

It's great to see a new face here in the Community. I'd be more than happy to provide you with some insight into why you're not able to enter a transaction for a day in May 2019.

One of the reasons is that your books are closed for the year 2019. However, you can easily change the date of your closed books to edit them. Don't worry. I can walk you through the process.

Here's how:

Log into your QuickBooks Online (QBO) account as the master or company admin.
Go to the Gear (Settings) icon in the top right-hand corner.
Pick the Account and Settings option in the "Your Company" column.
Select the Advanced tab.
Click the Edit (Pencil) icon from the Accounting portion.
Change the closing date.
Hit Save and then Done.

Afterward, try entering the property's basis. If it doesn't work, please give me some additional screenshots so that I can determine the best solution for your business. Here's a year-end guide and checklist that can help you in the future with your books.

This information should ease your mind about entering these details. If you have any other questions, just let me know. I'm always here to lend a helping hand. Have a great evening!

View solution in original post

Candice C · ‎December 16, 2020

I've got you covered, @dmckinney1003.

It's great to see a new face here in the Community. I'd be more than happy to provide you with some insight into why you're not able to enter a transaction for a day in May 2019.

One of the reasons is that your books are closed for the year 2019. However, you can easily change the date of your closed books to edit them. Don't worry. I can walk you through the process.

Here's how:

Log into your QuickBooks Online (QBO) account as the master or company admin.
Go to the Gear (Settings) icon in the top right-hand corner.
Pick the Account and Settings option in the "Your Company" column.
Select the Advanced tab.
Click the Edit (Pencil) icon from the Accounting portion.
Change the closing date.
Hit Save and then Done.

Afterward, try entering the property's basis. If it doesn't work, please give me some additional screenshots so that I can determine the best solution for your business. Here's a year-end guide and checklist that can help you in the future with your books.

This information should ease your mind about entering these details. If you have any other questions, just let me know. I'm always here to lend a helping hand. Have a great evening!

dmckinney1003 · ‎December 17, 2020

Thanks for the quick response. I have now created the properties as assets but have more questions. Should each property be a sub account of Buildings? If so, how do I do that? I set up one asset for each property and named the accounts based on the property address. But now looking at it, I'm thinking they should all show up under the Building subheading rather than as separate accounts. I tried to add a subaccount to one of the properties for Improvements but couldn't because I had already named an account Improvements as a subaccount of another property. So that makes me think I should only have one Building account with all properties listed under it as subaccounts?? But can't figure out how to do this. Any ideas?

Candice C · ‎December 17, 2020

Hey, @dmckinney1003.

Thanks for reaching back out and adding some additional questions about entering the rental property as a fixed asset in your QuickBooks Online (QBO) account.

I recommend consulting with your accountant to be sure of this information and setting this up. They'll be able to give you the best accounting advice for your business. If you don't have an accountant, don't sweat it. Use this link to find one near you.

You can always check out our QuickBooks Blog to see what's new in the product.

Should you need any further information, don't hesitate to ask. I'll always be around to help out. Wishing you and your business continued success!

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Entering rental property as fixed asset in QBO