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

Superdnaw

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?

Tom Young

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.

Tom Young

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

Thank you
I have that loaded and each of my accounts are zero out

Rob.jayhawk

This is totally unhelpful for me. How do I do this? Which one first? How do I zero out the mortgage account?

Tom Young

As written, the suggested entry is a split entry that starts in the checking Account, with the split items zeroing out the balance of the mortgage loan and zeroing out the basis of the house. The remaining amount would be the gain or loss on the sale.

If you don't want to do that and only want to zero out the two Accounts then simply make and entry in each Account for the current balance with the offset being the same Account in which you are making the entry, surrounded by square brackets, e.g., [Name of Loan Account] and [Name of House Account].