Category for Rental Property or Business Office mortgage?

LivTheDream
Member ✭✭
I don't see a Rental Property or Business expense category for mortgage payments. I see Mortgage Interest but not for the principle. I can't add (assume I shouldn't) a Rental or Business category - hard coded to Personal.
How is everyone handling non-personal mortgage payments? Use Home:Mortgage and category for the property ??? Seems that would mess up tax reporting.
Liv
How is everyone handling non-personal mortgage payments? Use Home:Mortgage and category for the property ??? Seems that would mess up tax reporting.
Liv
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principle is not an expense.....only the interest component of hte payment is an expense
presumably you have a liability account indicating the loan balance. The principle portion of the payment reduces this liability account as payments are made5 -
Hi @LivTheDream,
Yes, there is not an "expense" categories for the principal portion of mortgage payments (both in Quicken Home & Business or in any other Quicken version). That is because the principal portions of mortgage payments are not "expenses", rather they reduce loan balances (either personal mortgage loans, or business/rental property mortgage loans).
And, since the principal portions of any mortgage payments (personal or business/rental property related) are not "expenses" there is no threat of "mess[ing] up tax reporting. So most folks are posting principal payments on loans to the respective loan liability accounts (which thereby reduce the mortgage loan liability/balance).
I know these matters can be confusing, so please let me know if you have any follow-up questions.Quicken Home, Business & Rental Property - Windows 10-Home Version
- - - - Quicken User since 1984 - - -
- If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you. -5 -
The "expense" was when you bought the property and took out the mortgage to pay for it. If your principal payments were ALSO counted as expenses, you'd be double-counting the cost/expense of the property.BUT, since I really suspect that you really want to see where your money is going (and coming from) use a Cash Flow report ... which will include the principal payment as "money out".Q user since DOS version 5
Now running Quicken Windows Subscription, Home & Business
Retired "Certified Information Systems Auditor" & Bank Audit VP5
Answers
-
principle is not an expense.....only the interest component of hte payment is an expense
presumably you have a liability account indicating the loan balance. The principle portion of the payment reduces this liability account as payments are made5 -
Hi @LivTheDream,
Yes, there is not an "expense" categories for the principal portion of mortgage payments (both in Quicken Home & Business or in any other Quicken version). That is because the principal portions of mortgage payments are not "expenses", rather they reduce loan balances (either personal mortgage loans, or business/rental property mortgage loans).
And, since the principal portions of any mortgage payments (personal or business/rental property related) are not "expenses" there is no threat of "mess[ing] up tax reporting. So most folks are posting principal payments on loans to the respective loan liability accounts (which thereby reduce the mortgage loan liability/balance).
I know these matters can be confusing, so please let me know if you have any follow-up questions.Quicken Home, Business & Rental Property - Windows 10-Home Version
- - - - Quicken User since 1984 - - -
- If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you. -5 -
The "expense" was when you bought the property and took out the mortgage to pay for it. If your principal payments were ALSO counted as expenses, you'd be double-counting the cost/expense of the property.BUT, since I really suspect that you really want to see where your money is going (and coming from) use a Cash Flow report ... which will include the principal payment as "money out".Q user since DOS version 5
Now running Quicken Windows Subscription, Home & Business
Retired "Certified Information Systems Auditor" & Bank Audit VP5 -
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