If we made a profit from a house we flipped and sold, what account/category should I record the profit to? We just sold a house and the deposit from that came through in our bank transactions on QBO, but I don’t know what account/category to put it in. So when we purchased the house (weren’t using any accounting software at the time, nor was I employed then), it would have been considered an asset. But now that we are talking about a profit- I am seeing 3 different types of accounts that I could add the transaction to: Income (sales), Accts Receivable, or just our bank acct. In real life, we deposited it into the bank acct on file. But in QBO should I be depositing to that bank acct, A/R, or into an Sales Income? If I’m thinking correctly, would rule out A/R because it wasn’t something that was owed to us or that we billed. And maybe adding it to the bank account would be futile/invaluable because the purpose of QB is to track your business expenses and income to charted accounts for an overall picture-not sure. No accounting background here. Thanks!

QB Issue Resolution:

There is no Depreciation for Flipping property.

You post the Cost of the property and All Improvements as Asset = Construction In Progress or Work In Progress. That includes construction loan interest and any Costs for labor, materials, permits, etc.

Once the project is Done, you now see your Total invested.

When the project Sells, this is Gross income. The Deposit to banking is Income. You can do this with a Sales Receipt.

Additionally, you will Clear out that Asset account balance for your costs, to Zero, and that entry is put to Cost of Goods Sold, for the same date as the Sales.

And now your Reporting show the profit: Gross income minus costs, at the bottom of the P&L.

Don’t enter Profit. Enter Gross = everything in full.

Resolution for Issue 'If we made a profit from a house we flipped and sold, what account/category should I record the profit to? We just sold a house and the deposit from that came through in our bank transactions on QBO, but I don’t know what account/category to put it in. So when we purchased the house (weren’t using any accounting software at the time, nor was I employed then), it would have been considered an asset. But now that we are talking about a profit- I am seeing 3 different types of accounts that I could add the transaction to: Income (sales), Accts Receivable, or just our bank acct. In real life, we deposited it into the bank acct on file. But in QBO should I be depositing to that bank acct, A/R, or into an Sales Income? If I’m thinking correctly, would rule out A/R because it wasn’t something that was owed to us or that we billed. And maybe adding it to the bank account would be futile/invaluable because the purpose of QB is to track your business expenses and income to charted accounts for an overall picture-not sure. No accounting background here. Thanks!' available: Yes (Solved).
Source: Intuit Community forum.

If we made a profit from a house we flipped and sold, what account/category should I record the profit to? We just sold a house and the deposit from that came through in our bank transactions on QBO, but I don’t know what account/category to put it in. So when we purchased the house (weren’t using any accounting software at the time, nor was I employed then), it would have been considered an asset. But now that we are talking about a profit- I am seeing 3 different types of accounts that I could add the transaction to: Income (sales), Accts Receivable, or just our bank acct. In real life, we deposited it into the bank acct on file. But in QBO should I be depositing to that bank acct, A/R, or into an Sales Income? If I’m thinking correctly, would rule out A/R because it wasn’t something that was owed to us or that we billed. And maybe adding it to the bank account would be futile/invaluable because the purpose of QB is to track your business expenses and income to charted accounts for an overall picture-not sure. No accounting background here. Thanks!: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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