Start up expenses and Quickbooks - Please help.

[Greg Wilson]

Good Evening my fellow Comrades, I have a few questions I hope someone can help me with. I purchased a buy and hold rental property last year (2019) and have just completed a complete rehab of the property. I spent $110K on the property and have spent $20K over the past 8 months getting it ready to rent. I know I need a CPA and I am in the process of interviewing them. In the mean time I need to get my books in order for my 2019 taxes. Here are my questions.

1. I just opened my business account, however the $130K was paid for with personal funds. I have not started using the business account yet.

2. How do i enter these initial $130K in "Startup Expenses" in Quickbooks Pro? I thought I would just show it coming from my "Petty Cash" account and balance it out with the "Members Contributions" account. I do not plan to pull these funds back out of the business at this time so i dont want to show as a loan. Instead of using the Petty Cash account I thought it might be cleaner to create a temporary "Startup Funding" Bank Type Account. Thoughts?

3. I also purchased a few tools for the rehab, can these be expensed?

4. Also should I use cash or Accrual accounting? I think most people will say cash.

5. Trying to decide how I was to categorize my "Operating Expenses" vs. my " Rental Expenses" I have seen some that actual use COGS to track Rental Expenses and Expenses to track Operating Expenses.

Thank you,

Greg