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How to proceed with a QuitClaim Deed in QB

This is a question on how to best handle this in QB. Normally when an "old" owner moves out and a new owner moves in, the books are clean from the standpoint that the Title company takes care of the overages/shortages issues a check etc. I then make the old owner "inactive" and start fresh with the new owner. First time (hopefully last) that this happened. Old owner had the house for 5 years, never paid and HOA fees. Liens etc filed. Year 4, the old owner did a quitclaim deed to new owner. This was made public Jan 10, 11. According to lawyer, new owner assumes all the debts from the past owner. So, I would like to keep the old owner as inactive and start fresh with new owner, however the "keep it simple" rule is telling me to just change the name. If that is not the best way, suggestions appreciated.

Reply to
Meebers
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Just transferring the balance would only require a journal entry.

Reply to
anon

Actually, it will take 2 journal entries using a clearing account as the offset. You can't use 2 A/R entries in a journal entry.

Reply to
Laura

And you'd probably want to be detailed about the entries that make up the new owners debt when you make those journal entries. The reason being so there is a good paper trail that can be followed.

Reply to
paulthomascpa

And you'd probably want to be detailed about the entries that make up the new owners debt when you make those journal entries. The reason being so there is a good paper trail that can be followed.

- Paul Thomas, CPA

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Here is what I did, appears to "look" right JE#1 A/R Credit $ to old owner Clearing account Debit JE#2 Clearing Account Credit $ to new owner A/R Debit

Made the clearing Account and old owner "inactive"

When and if the new owner pays, I guess we would just enter a payment against the lump sum owed. (no invoices)

Appreciate comments.

Reply to
Meebers

That works if you want to transfer the balance owed from one owner to another. Put a note in the new owners profile to point to the old owner.

One of my clients is a timeshare resort. In the cases of QC we just change the name to the new owner so that all of the original invoices are there.

Reply to
Laura

That works if you want to transfer the balance owed from one owner to another. Put a note in the new owners profile to point to the old owner.

One of my clients is a timeshare resort. In the cases of QC we just change the name to the new owner so that all of the original invoices are there.

I probably made more notes than necessary...but. On the new owner, I had made reference to the invoices involved. At my daughters work, (commercial real estate) they also have a physical Journal entry log in which a longer detailed explanation is made along with all the necessary papers involved.

Reply to
Meebers

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