Income Digs

"Income Diggs" is a podcast focusing on the use of technology to help real estate investors and bookkeepers expand and streamline their operations. The show provides insights into technological solutions for the real estate market.

Repair vs. Capital Improvement- How to Track in Quickbooks Online

Oct 6, 2023 • 20 mins

In this episode, Nick Baldo delves into the intricacies of capital improvements and cost of goods sold in real estate investing. He explains how to log capital improvements in QuickBooks, the role of CapEx, and the capitalization of expenses. Additionally, he discusses project tracking, expense allocation, and how to differentiate expenses using the customer feature in QuickBooks. The episode wraps up with an introduction to the Real Estate Accounting Bootcamp course.

Key Points

End to End RE Accounting Training: https://www.incomedigs.com/reab (Code YOUTUBE50)
Free QBO MiniCamp: https://bit.ly/3uNlesQ
Download the FREE Ultimate Chart of Accounts: https://www.incomedigs.com/chart-of-accounts
Without question, one of the most common questions among real estate investors and their bookkeepers is: "Should I capitalize this cost or deduct it as an expense" I'll break this down and show you how to add your renovations to Quickbooks Online

Enroll to Real Estate Accounting Bootcamp: http://bit.ly/reabcourse (Enter Code YOUTUBE50 for $50 off!) End to End Podio Training: https://www.incomedigs.com/pcc Check out our Podio Templates: https://bit.ly/3pE4DBt Download our guide: https://www.incomedigs.com/qbosetupguide

Every business owner will contribute cash to their own business. This can come in the form of a capital infusion, or just using your personal card for business expenses. This video demonstrates how to track such expenses in QBO.

Speakers

Nick Baldo

Host • 100%

Chapters

0:00	Introduction and topic overview
0:14	Capital improvements and cost of goods sold in real estate investing
1:03	Buying and splitting a property - a practical scenario
2:03	Capitalizing vs extending expenses: IRS guidelines and depreciation schedules
3:29	The role of CapEx category and the use of a generic chart of accounts
4:12	How to log capital improvements in QuickBooks
6:30	Transitioning expenses from CapEx to rehab costs
8:11	Customer feature in QuickBooks for differentiating expenses
14:25	CPA advice on capitalization of expenses and journal entries
16:07	Project tracking, expense allocation, and troubleshooting
18:28	Understanding CapEx vs cost of goods sold for project expenses
19:28	Listener engagement and introduction to Real Estate Accounting Bootcamp course
20:10	Conclusion and request for future topic suggestions.

Transcript

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