business expense accounting

Also, by the way, if anyone can point me towards any written or online material on this subject, it'd be great... thanks.

wrote

Ever hear of KISS? ....and I'm not talking about the band....

Usually the best accounting is the simplest accounting. When you write two checks, you post two entries, maybe to two different accounts.

Rent.

Sure.

You can make the accounting as difficult as you like, or as simple as you like (to a degree).

There's no real point to break the phone bill down into the various costs, per line, advertising, taxes, fees, long distance, etc. It could get burdensome, and the more detailed you try to get with the bookkeeping, the more chance you have of making mistakes.

You're getting very confused in the details. You do realize that your gross wages are used to pay for your own, let's say groceries, and the grocery store has a salary expense called wages they pay to their own employees. So using the pattern you seem to be following, you have an inacurate picture as to total wages.

Look, it doesn't matter all that much. You're just making "make-work" by breaking down the payment to the landlord.

I just want to understand more about the reasoning behind whatever is the right answer. It's also easier to just turn on your t.v., cell, or car and use them without thinking about it, but sometimes someone wants to pull off the cover and understand more about how it works.

So anyways...

a) I take it that the conclusion is that all the pass-throughs that the tenant pays is considered and deducted as "rent"? ("rent" in the broad sense).

b) and then, does the tenant list this as one figure on his 1120 rent expense, or does it get broken down further on another form?

thanks

wrote

I would treat it all as rent. It's either a single monthly check, or some number of checks (rent + an additional check or checks for taxes, insurance, etc).

If it's paid to a single entity, in this case the landlord, then it's called "rent". The only other form that may come into play is a Form 1099-MISC where the amount is reported as rent paid to the landlord. I'd make it for the full amount, inclusive of any taxes, insurance, etc paid).

wrote

To help you clear things up, the landlord's gross income should be for $105.

Of course, some folks cheat and lie.

ok thanks