Categorizing Funds in and out of a Real Estate Agent's Bank Account.

@Rainflurry 

Thank you a lot. 

Hello again, Rainflurry.

I appreciate you for always sharing your knowledge about QuickBooks. This will definitely help other users as well in the future. Please keep on posting here in the Community.

Keep safe and have a great rest of the day.

what if you are the buyer receiving the escrow account in full just a one-time payment? my CPA said to set it up as a contribution but I am unsure how to do this as I can not find what would be close to something like this. 

Thanks for joining the Community and getting involved with this thread, NoDucksNoRowsJustSquirrels.

To verify my understanding, are you trying to record an owner's contribution, capital investment, charitable contribution, or a company-paid contribution to an employee's retirement or health insurance plan?

Once I have this information, I'll be able to do further research on my end.

I'll be looking forward to your reply. Have a lovely day!

Hello,

Hoping you can help with a slightly different scenario.  I received $2600 from the buyer (placed in escrow acct via journal entry thanks to above instructions).  I will retain $1040 as commission for a lease and send the balance to the owner. 

What is the best way to enter this? I usually use an invoice to bill the owner. On my invoice, lease commission is linked to an income account. How do I clear the escrow account to pay the owner and record the income without recording income twice? See attached screen shots.

Thank you!

@adriennemarkes 

On the invoice, use the Commission Income Lease item per your screenshot as line item #1.  Then, create a service item called 'Payment From Escrow' or something similar and link that item to the 'Escrow - Seller/Buyer' liability account.  Enter the 'Payment From Escrow' service item as line item #2 on the invoice for -$1,040.  That records the income and reduces the amount in escrow to $1,560 ($2,600 - $1,040) and the invoice is paid.  If the $1,560 escrow balance is due to the owner, write a check for $1,560 and assign the 'Escrow - Seller/Buyer' liability account to the check.  The escrow account is now $0, you have $1,040 in income, and you refunded the owner the balance of $1,560.  Hope that helps.   

This worked perfectly! Thank you so much!