how do you categorize mortgage payments for rental properties

I know you cannot expense out mortgage payments for rental property.  How should these be categorized or tracked in Quicken?


  • J_Mike
    J_Mike SuperUser ✭✭✭✭✭
    edited October 2018
    Set the rental property mortgage up just as you would for your mortgage on your personal residence - a liability account for the amount owed and a linked asset account reflecting the estimated current value.

    Use Qwins, scheduled mortgage payment template.
    The principal payments are simply transfers to the liability account.
    There are no tax impacts from the principal payments; i.e., principal payments are not reportable on your tax return.

    The mortgage interest payments are reportable on Schedule E.
    Categorize the interest payments using QWins rental mortgage interest category - it has the Schedule E:Mortgage Interest Expense tax line assignment.

    Payments for taxes and insurance are also reportable on Sched E. Again, QWin includes categories with the relevant Sched E tax line assignments.
    QWin & QMac (Deluxe) Subscription
    Quicken user since 1991

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