How to I expense pass-through money from my mang company to me

[Steve Brown]

I'm looking for 'bookkeeping' help. 

I have one company (partnership) which owns rentals (comp1). I have a second company (Scorp) which manages the properties (comp2). 

I receive Section 8 payments in the name of the management company. 

I have the management company pay all the bills on the rentals. 

I use Quickbooks. 

I have a mind block on how to expense the pass-through money as well as the bills the management company pays on behalf of company 1 so that I can show a true financial picture of the Management company for the IRS (and anyone else who wanted to know). Can you help?

[Gita Faust]

Hi Steve,

Sure we can help with your QuickBooks and bookkeeping needs. We are QuickBooks certified consultants with a niche real estate and property management industry. I have authored books and guides for landlords, developers, investors, and property managers ...powered by QuickBooks.

Do contact me would be glad to talk to you. 

Enjoy Labor Day Weekend!

[Dick Rosen]

Hi Steve, I'm assuming you have 2 separate QB files, one for each company. Simply write a check from one to the other and make the deposit. You must also have separate bank accounts to make this work.

[Steve Brown]

Hi Gita, Thanks for the offer I may be calling you.

Hey Dick, Yes I have two different company accounts and two different checkbooks.

My problem is that all my sect 8 checks come in under the mgmt EIN but all the expenses they pay are the PROP owner expenses.

So if $800 in rent comes in to a single operating acct
and the mgmt pays $500 mortgage pymnt
and then pays prop owner $300
The mgmt company has $0 income and $800 expenses EXCEPT

$500 of what is paid out is really a mort expense for the PROP owner, and is recorded that way in quickbooks.

So how do I expense that as a $500 payment to the PROP owner, and what do I call the $300 pass through payment to the owners

Right now, to me for the mgmt comp, it looks like
$800 income
$500 mort payment expense for owner
$300 owner pymnt
$500 pass through money paid out on behalf of owner
-$500 net

I know I'm missing something but I can't figure it out.

Steve