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How do you sell an investent rental building?

Unknown
Unknown Member
edited May 2017 in Investing (Windows)
How do I post sale of an investment property? ex. how would I record sale of a house?
I am using 2017 Premier Version R6

Comments

  • Unknown
    Unknown Member
    edited May 2017
    You'll get no help on here until you answer the following, which you should have provided in the first place.

    Quicken year and release.
    Mac or Windows?
    US or CDN?
    Operating system.
    Is the house already in an asset account register in Quicken?
  • Unknown
    Unknown Member
    edited May 2017
    This is in Windows version and in US, Quicken 2017 Release R6.
    Yes the property is in an account register in Quicken, but I don't see how to sell to get out of account register.
  • Unknown
    Unknown Member
    edited May 2017
    Here's how I handled mine:

    image

    Notice how I increased and decreased the value of my home through the years according to the estimated market value.  These are categorized back as a transfer to the SAME asset account I'm in...so it's a net wash since it's an unrealized gain or loss.  

    The line item in 8/26/16 was a line item to adjust the actual selling price of the home.  Closing took place on 9/26/16.

    Here is the split lines for that 9/26/16 transaction:


    image

    Note, that the transaction total equals the closing selling price.

    The other transactions are all closing cost and prorated taxes associated with the sale.  I also had to pay my stupid village for "turning off" my water account.  

    The final proceeds are what was electronically deposited in my checking account, which was the net proceeds for the sale (the actual money I received).  

    If you have a mortgage on the property, you will need a transfer split line item to your mortgage liability account to pay off the remaining mortgage amount (which should be the remaining principla balance)...and then another split line for the net proceeds you actually received.  

    You can add as many closing cost line items as you need to be as specific as possible.  Or you can just lump them all together.

    I itemized them, especially the prorated real estate taxes, the county and city transfer taxes and the attorney fees because those are all tax related items.  At the end of the year when I did my taxes, I didn't have to dig out the closing statement and then interpret what's deductible and what isn't.  It was all there in Quicken.

    If you have any further questions, let me know.  
  • Unknown
    Unknown Member
    edited May 2017
    BTW, in your case if it is investment property...instead of the transfer directly to your checking account for the proceeds, you might want to categorize it as SALE OF PROPERTY and assign a tax line item for the NET real estate gain.

    THEN, add a line in the register to transfer that amount to your checking account (or applicable account where the funds ended up).

    This way, you'll have a record of the property gain for tax purposes...and a separate line to show the transfer of cash to your account.  
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