I just sold my house and need to input the transaction to zero out both liability and asset account

Superdnaw
Superdnaw Member ✭
in Registers & Transactions (Windows)
I just sold my house. How do I input the transaction in Quicken to zero out the liability account or leave a credit because I will get a small amount back due to the payoff estimate included more interest. then also zero out the asset account linked to it?
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Best Answer

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited April 2021 Answer ✓
    The generalized accounting entry for the sale of a house is:
    Debit (increase) Checking Account               $XXX               (Net check deposited)
    Debit (decrease) Mortgage Loan Account   $YYY               (Zero out mortgage loan)
    Credit (decrease) House Account                  $ZZZ               (Zero out house account)
    Debit or Credit (Loss)/Gain Category            $AAA
    Of course a real world situation can more complex then this as there almost certainly are elements of the sale that I've compressed into that last Category that you'd probably want to split out for income tax purposes, like property taxes you paid or that were refunded to you, mortgage interest expense to closing date, and so forth.   You could even split out certain costs of sale, e.g., commission, or other elements of the house sale you'd like to keep track of for future reference.

Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited April 2021 Answer ✓
    The generalized accounting entry for the sale of a house is:
    Debit (increase) Checking Account               $XXX               (Net check deposited)
    Debit (decrease) Mortgage Loan Account   $YYY               (Zero out mortgage loan)
    Credit (decrease) House Account                  $ZZZ               (Zero out house account)
    Debit or Credit (Loss)/Gain Category            $AAA
    Of course a real world situation can more complex then this as there almost certainly are elements of the sale that I've compressed into that last Category that you'd probably want to split out for income tax purposes, like property taxes you paid or that were refunded to you, mortgage interest expense to closing date, and so forth.   You could even split out certain costs of sale, e.g., commission, or other elements of the house sale you'd like to keep track of for future reference.
  • Superdnaw
    Superdnaw Member ✭
    Thank you
    I have that loaded and each of my accounts are zero out

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