farm commodities for wages

[JMorgan]

I give my son grain and hogs in lieu of wages. How do I record this in Quickbooks so that I can keep track of production records?

[FlagshipTech]

There are several issues involved (gift income to your son, Social Security & Medicare considerations, and so on) and I recommend you speak to a CPA or tax preparer first, so your tax records in QuickBooks can reflect what you truly want them to show.

Beyond that, the answer partly depends on whether you use QuickBooks' Tax Reporting feature. If you do, one approach is to set up separate subaccounts beneath Grain and Hogs income accounts; Sales:Grain:Actual and Sales:Grain:Gifts for example. Record most sales via the Actual subaccounts, but gifts as "sales" which credit the Gifts subaccounts. Your P&L Reports will include all "sales" even if they're gifts.

But only assign a Tax Line to the "Actual" subaccounts, leaving the Gifts subaccounts with no tax line. Then when you create a Schedule F Tax Report in QuickBooks, the Gifts subaccounts will be omitted from income totals.

But again, consult a tax professional to be sure you're doing everything as necessary for your tax and federal/state reporting requirements.

Mark Wilsdorf