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Level 1

How do I manage property purchase and deposit in QB? Is it classed as an asset or do i just place an invoice against a payment?

This purchase is to FLIP the house and sell asap, I have paid 10% deposit and auction charges.  Do I enter the property purchase as a fixed asset and then when sold show the increase in value somehow?  What do i do with the costs of materials, can i identify them against a particular house so that i can keep track of each project profitability?

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Best answer October 19, 2018

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Level 15

How do I manage property purchase and deposit in QB? Is it classed as an asset or do i just place an invoice against a payment?

create a current asset account named for the address

post all costs, and purchase price to that account

when you sell, use a service item for the house sale and record the sales price, then do a journal entry
debit House sales expense (set this up in the chart of accounts first)
credit the current asset account for that address
use the full amount in the current asset account

the current asset account for that address is now zero balance, and can be renamed for the next house you flip

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Highlighted
Level 15

How do I manage property purchase and deposit in QB? Is it classed as an asset or do i just place an invoice against a payment?

create a current asset account named for the address

post all costs, and purchase price to that account

when you sell, use a service item for the house sale and record the sales price, then do a journal entry
debit House sales expense (set this up in the chart of accounts first)
credit the current asset account for that address
use the full amount in the current asset account

the current asset account for that address is now zero balance, and can be renamed for the next house you flip

View solution in original post

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