Record Owner Finance Land Sale in Quickbooks

[Brock Roorda]

Hello,

We had some land that we purchased earlier this year and went through the platting process with the county to subdivide.  We sold a few parcels off already in a traditional fashion but I have one that has me scratching my head on exactly how to record in QuickBooks.

I am unsure of how to record the parcel that we just sold for $165k where we we offered owner financing note of $135k as interest only with a 36 month balloon. (Texas attorney drafted up the note documents and the transaction went through a Title Company).

My uncertainty is in QuickBooks and is around the recording of the sale.  I understand the normal Debits/Credits.  For the $135k owner financed note, do I start by creating an item in my chart of accounts as an “Accounts Receivable” or should it be an “Other Asset” or something else and then what should the tax-line mapping be set as?  We operate on a cash basis and since we did not take in this $135k as cash this year I am not certain what I would need to change so that it does not show as net profit on the P&L Statement.  (Obviously we would record interest payments as income when they come in).

Thanks in advance to any of you QuickBooks/Real Estate gurus.