Rental expenses in the Rental Property Profit/Loss tab

Anil
Anil Member ✭✭
I have Quicken for Windows 2020 (R27.42)
I setup a rental property with tenants and linked it to the property. This is a property that I used to live and hence managed its expenses just like regular expenses. Now that I rented it, I am classifying those expenses with a specific tag that I want to track my rental expenses. There are certain expenses that are not being shown in the Profit/Loss tab. For example, the mortgage payment (Principal, Int and Escrow) is tagged with this tag and I dont see this expense in the P/L tab. What makes a transaction to be not shown in the P/L tab? I dont enter transaction through the Add transaction feature in the Rental tab. When the transactions comes through my bank, I enter them and tag them with this specific tag.

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Answers

  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Hi @Anil,

    In general, the principal and escrow items are not considered to be expenses for both tax and accounting purposes.  Instead, you will be allowed to deduct depreciation on the property, real estate taxes (when paid) and the interest paid on the mortgage loan.

    Have you setup the property in Quicken, so that you can then see the depreciation expense/deduction?

    Frankx


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  • Anil
    Anil Member ✭✭
    Thanks Frank. OK, the principal and escrow are not considered as expenses. The interest I am paying I am assuming is considered an expense. Correct ? The mortgage interest is flagged as Schedule A tax line item. Is that the reason why it is not showing up in the Profit/Loss ?

    And where can I see the depreciation of the property? I did setup the property in Quicken.
  • Anil
    Anil Member ✭✭
    Thanks Frank. That clears. I think what I need is a cash flow report where I can see the cash IN (rents coming in) and cash out (Expenses + Mortgage I pay to the bank that includes P+I+Escrow)
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