I am purchasing a rental property that is not yet built. The builder is requiring 5k down, then an additional 5k 60 days before completion. I wrote a check to the builder for the initial 5k. How do I enter that in quickbooks? It is not an expense is it? I believe that it would be a long term liability, either due to owner, or listed under the property name? I am not sure how to enter the check. Please help?

TK

It is NOT a liability as far as YOU are concerned. It is for the builder, but you aren't the builder.

Dr. Some Type of Prepaid Account (an asset account) 5,000
Cr. Cash 5,000