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JulieParenti
Level 1

classes vs locations

I have a client with multiple rental units under 1 company.  Is it better to keep track of each unit under as Classes or Locations.

 

Solved
Best answer March 31, 2021

Best Answers
john-pero
Community Champion

classes vs locations

Location tracking is only an option in QBO, not desktop. So, yes , it is better to use Class tracking for rental properties that are different deeded address but same EIN owner. Producing a P&L by Class gives you what is necessary to fill out Schedule E or Form 8825 depending on entity type. If the owners are different then each property needs to be in its own company file

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2 Comments
SarahannC
Moderator

classes vs locations

Hello there, JulieParenti.

 

For the rental units under one company, you can use the Class feature to track the income services and products provided within each unit. In QuickBooks Desktop, you'll need to turn on class tracking first. Here's how:

 

  1. Go to the Edit menu, then select Preferences.
  2. Select Accounting, then go to the Company Preferences tab.>
  3. Select the Use class tracking for transactions checkbox.
  4. If you want a reminder when you haven't assigned a class, select the Prompt to assign classes checkbox.
  5. Select OK.

 

Then,  set up class categories for expenses and accounts. Once done, you can assign a class to the transactions you want to use. 

 

You can check this article for more details: Set up and use class tracking in QuickBooks Desktop

 

Let me know if you have other questions. Take care always.

john-pero
Community Champion

classes vs locations

Location tracking is only an option in QBO, not desktop. So, yes , it is better to use Class tracking for rental properties that are different deeded address but same EIN owner. Producing a P&L by Class gives you what is necessary to fill out Schedule E or Form 8825 depending on entity type. If the owners are different then each property needs to be in its own company file

View solution in original post

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