Logging a Refinance in Quickbooks Online

[Pavlos Kasselouris]

Hi everyone!

I recently had a bookkeeper from India, setup QBO for my 4 rentals. Properties are under a LLC with a partner and we have bought, made capital improvements, cash out refinanced. I feel things got a little too complicated for the virtual assistant. Overall he did a good job, so I dont complain.

My question is how do you log a cash out refinance on a property like the one I referenced.

I had him log under the property, the actual cost (split land-building),  capital improvements(which includes closing costs from cashout refi), accumulated depreciation, loan costs that gets amortised over the life of the loan, and setup an escrow account that all the prepaid taxes and insurance went. 

Of course under the long term liabilities went the actual mortgage.

What I don't understand is under what account does the actual cash go to, since its not a taxable event?