How do I track jointly held mortgage

I own a piece of property with someone else. When I enter the mortgage, do I enter the entire amount owed? If so, when I make my payments, how do I enter their payment so that it doesn't show up as if it's my money?

Best Answer

  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Accepted Answer
    Hi @janna99,

    The cleanest way to set it up would be for you to only record one-half of the mortgage, and one-half of the property in your Quicken data file.  This would reflect the reality that you only own one-half of the property and only owe one-half of the mortgage.

    On the payment issue, it sounds like perhaps you are making the mortgage payments for both you and the other owner.  If that is the case,  I would suggest that you setup a new asset account in Quicken (I'd suggest using an off-line savings account as the type).  You can call it "Due to/from Joe" and when you deposit their check (for their share of the mortgage) you should enter that deposit in Quicken in the category field as [Due to/from Joe].  When you pay the mortgage payment for the full amount, you should split the entry entering one-half of the payment to [Due to/from Joe] and the remaining half (your portion) being split between the "Loan Payment - Interest" and "Loan Payment - Principal".

    Let me know if you have any followups.

    Frankx


                           Quicken H&B-Subscription Ver. 34.24 - Windows 10-Home Ver. 2004
                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -

Answers

  • Frankx
    Frankx SuperUser ✭✭✭✭✭
    Accepted Answer
    Hi @janna99,

    The cleanest way to set it up would be for you to only record one-half of the mortgage, and one-half of the property in your Quicken data file.  This would reflect the reality that you only own one-half of the property and only owe one-half of the mortgage.

    On the payment issue, it sounds like perhaps you are making the mortgage payments for both you and the other owner.  If that is the case,  I would suggest that you setup a new asset account in Quicken (I'd suggest using an off-line savings account as the type).  You can call it "Due to/from Joe" and when you deposit their check (for their share of the mortgage) you should enter that deposit in Quicken in the category field as [Due to/from Joe].  When you pay the mortgage payment for the full amount, you should split the entry entering one-half of the payment to [Due to/from Joe] and the remaining half (your portion) being split between the "Loan Payment - Interest" and "Loan Payment - Principal".

    Let me know if you have any followups.

    Frankx


                           Quicken H&B-Subscription Ver. 34.24 - Windows 10-Home Ver. 2004
                                             - - - - Quicken User since 1984 - - - 
      -  If you find this reply helpful, please click "Helpful" (below), so others will know! Thank you.  -
  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    "One-half" of the property and loan in your Quicken file is correct from the standpoint of your own personal net worth, but assuming you're doing the accounting for this informal partnership I'd keep that property and the associated loan in a separate Quicken file.  In your personal file you'd simply have one asset Account tracking your equity in the partnership.
    It's a little more work doing it this way - you'd have to set up a phantom checking Account and two phantom "partner's equity" (actually, "liability" Accounts) in the "partnership" file - but it keeps the property and mortgage intact in their correct amounts and in the long run can reduce confusion.  This approach would be especially valuable if other costs are incurred, (property tax?, insurance?, improvements?) making these sort of activities easier to track.
  • PIERREPAUL
    PIERREPAUL Member
    edited March 26
    [Removed-Off Topic]
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