How does a landlord treat a reimbursement for non rental damages from a tenant?

[Raeka]

I am set up as a S corp. for my apartment house. My tenant broke an item on our property with her car and reimbursed me for it by including it with her monthly rent. Its included in my check register in a tenant damage account I set up. I invoiced it and then paid the damage amt. so as not to mix it up with rental income. 

My Turbo Tax balance sheet is now off by that exact amount. I am not sure how to edit my figures in TurboTax since it was a reimbursed expense. I still have to replace the item she broke but not sure when I will do that but she paid for it's replacement.

My Assets are more than my Liabilities on my Schedule L. How do I fix it properly?

Thanks for any help.

[Anonymous_ · Accepted solution]

---

@Raeka wrote:

My Assets are more than my Liabilities on my Schedule L. How do I fix it properly?

---

Did you increase your Cash by the amount of the reimbursement but entered nothing on the Liabilities side to offset that amount?

You could simply add the reimbursement figure to a Liabilities line, such as Other current liabilities, until you actually replace the item (in which case you will reverse the entries accordingly).

[Raeka]

Hi,

Yes, I guess I did. It was included in the deposits if that's what you mean. So I included in other liabilities and that makes it balance. I didn't know if that was OK to do. I guess I understand now that it's an item owed to the business. That makes sense.

Thanks!

[Raeka]

Hi again,

Well another tax year and I haven't replaced that item. Do I have to include it at End Of Year current liability to keep the balance sheet in balance?

[PatriciaV]

A balance sheet liability remains until you resolve the liability. You can either wait until you replace the item or write off the balance and recognize the amount as income.

This is a TurboTax support forum. You may wish to re-post your question to the QuickBooks support forum here: https://community.intuit.com/quickbooks-online.