Transferring Real Estate between companies in QB

[Mike5380]

I have been asked by a company that holds several properties how to move a particular piece of real estate from one company to another in QuickBooks. Both companies are within their holdings and in QuickBooks. Company1 has the property listed in their Fixed Assets at about $650,000 with a N/P payoff at $450,000, according to their Close Statement there are about $4500 in fees and charges with the bank.

Question is ... can I just use JEs to transfer this property? Can I just zero out the balances in the FA and N/P for Company1, and create a new accounts in Company2 to bring the property in? How do I treat the property taxes ... they were not listed in the Close Statement ... I don't think I need to do anything there except prorate the portion paid to the end year and credit that to Company2.

All comments are welcome.

Mike

 

[The Finance Writer]

Yes, you can use journal entries on both sets of books. Follow the closing statement; don't assume the property taxes are prorated as part of the transaction.