I purchased a rental property and performed some major renovation to the property. What are some of the best practices to keep track of the rehab expenses? For example, I purchased $3,000 materials (e.g., cabinets) and spent $2,000 in labor to renovate the kitchen. Do I set up a WIP account to keep track of the materials and labor spent overtime, and once the kitchen renovation is complete, I will move those costs from WIP to Fixed Asset and start depreciation? Alternatively, do you use Items or Customers: Job to keep track of those expenses? Thanks in advance for any suggestions.
