How to inventory purchase of house in QuickBooks

inventory purchase of house

Q. I am trying to determine if I should use a non-inventory item to track our cost to inventory purchase of a house or sell a house.

A. First you have to decide, whether you purchased the house for fix, rehab, and flip or for rental or if it will be your primary residence.  After you have made the decision, treat the inventory purchase of a house as a service item and link it to the right real estate asset account. Here is a general rule of thumb to build your chart of account:

Gita Faust

About the Author

Gita Faust has over 30 years of accounting experience in the real estate and property management industry, Gita Faust is more than just a real estate investor; she is also popular for her work as an accountant, consultant, mentor, speaker, QuickBooks Top ProAdvisor, QuickBooks Solution Provider, member of Intuit’s Trainer/Writer Network, and, of course, author. Gita is well-known for her exemplary leadership and advisory skills. In fact, she even helped pioneer the adaptation of QuickBooks to suit the needs of professionals in real estate and property management. To share her knowledge she has written a series of courses titled Simplified Accounting Solution, which provides step-by-step guidance for those working with QuickBooks.

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