I bought your Investor and Tenant Books last year (the 5mWAP system using QuickBooks Pro... http://www.5mWAP.com ).
This is one of the best products I've implemented in my real estate system.!
I've thoroughly enjoyed using it this year in our business.
My questions are the following:
1. In following your All Star Plan in your book and the Christmas Credit, how am I supposed to categorize the credits that I give to tenants on the 13th, 25th, and 37th months?
A. You could simply enter "All Star" (using a statement charge) and then describe the details o the discount in the memo field or description fiel and then enter the dollar amoount of the discount ad make sure you enter a "-" minus sign in front of the dollar amount... ... for example, if you wanted to give them a 10% discount on an $800 rent,
you would enter "ALL STAR"
description, earned 10% discount
dollar amount = -$80.00
this will automatically deduct this amount from the amount owed you for this billing period
I'm assuming this will also include the 2.9% rent increase too.
NO, No, Breisch... you will actually "edit" or modify the existing monthly recurring charge for the rent....
For example....On the 13th month, should I charge the normal rent plus the 2.9% increase and then on the next line on the register show a 10% credit of the Rent + 2.9% increase back to the account using the discounts feature? How do you normally show this on your books?
These are two totally separate independent transactions and procedures. Please do NOT try to combine them... just keep it simple and you will be happy.
2. Since this is my first full tax year with our business, I was planning on using TurboTax to calculate our personal and business taxes, as well as getting a CPA to do them too. Basically I just want to see if the CPA really gets us more money than we can do on our own.
Be careful here.... i do not know your CPA... Please make sure you get a Real Estate EXPERT CPA.... Remember, Veterinarians and Brain Surgeons are both called "Doctor"... which one do you want to work on your noggin?
The only problem I'm running into is that none of the Tax Line Items are declared in the Tenant or Investors Module.
I believe I remember you saying on the Getting Started Video not to add anymore categories into the list and that these Accounts/Categories would be the only ones we would need to run the business, except for adding the normal bank, mortgage, escrow etc accounts.
TRUE, the shorter the better.... if you are an avid and sharp Quickbooks user, you could assign tax form schedule specifici lines; however, i do not recommend it.. I highly recommend to have an expert, highly qualified REAL ESTATE CPA who happens to be an investor as well..
I was wondering why the Tax Line Items are not declared on any of the accounts/categories. Is it supposed to be that way? Some of the categories are pretty self explanatory as to what Tax Line Item goes with it... such as Advertising. You don't happen to have what category goes with what tax item do you?
Thank you so much for developing this easy to learn and use system.
Sincerely,
Breisch Stallings
Madison, MS
I hope this helps you Briesch!
Keep Cranking It
Mike Butler
http://www.5mWAP.com
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