Property Under Contract

Question

Not sure how to record the following in Quicken
 1- Purchased a property on a installment land contract. AKA with monthly payments not to be applied towards the principle with a balloon payment at the end of the term.

I know what the asset account is, but what type of liability account would that be? its basically almost like a monthly lease fee. I do have a liability to pay the purchase price at the end of the term, but the monthly payment is a lease fee and not attributed to the principle  or interest which is not relevant in this transaction.
 Thank you

Tom Young · Accepted Answer

An "installment land contract" AKA "contract for deed" and other names is treated by the IRS as a mortgage loan and the transaction itself as a "sale."  You yourself have recognized it as such, since you've recorded the asset, so I see no problem with the same treatment in Quicken.  Establish the balloon payment as a non-amortizing loan - no need to use Quicken's loan wizard for that - and treat the monthly payments as interest.