Sale of home entry

How should I record the sale of a house?

Best Answer

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Answer ✓
    It depends on how accurate you want to be.  If you simply want to get the house off Quicken you can make an entry in the house Account in the "Decrease" column in the amount of the house with an offsetting entry to the same Account (surrounded by square brackets] in the Category field and the house will disappear without affecting any other Account in the file. 
    A small step up from doing it this way is the vastly simplified entry shown here:
    where you make an entry closing out the loan, the house, record the net deposit into your checking Account and the balancing entry is a gain or loss.  You could make this entry in any of the Accounts involved but it's probably easiest to do this as a split entry in the checking Account, entering the net deposit and then splitting that deposit out to the other Accounts and a Category of your choosing.
    Of course accounting for a house sale really is more complex than that if you try to break out all of the components of the sale, like property taxes (either a credit to you for taxes you've paid or a charge for taxes you owe), interest paid in closing and so forth.

Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    Answer ✓
    It depends on how accurate you want to be.  If you simply want to get the house off Quicken you can make an entry in the house Account in the "Decrease" column in the amount of the house with an offsetting entry to the same Account (surrounded by square brackets] in the Category field and the house will disappear without affecting any other Account in the file. 
    A small step up from doing it this way is the vastly simplified entry shown here:
    where you make an entry closing out the loan, the house, record the net deposit into your checking Account and the balancing entry is a gain or loss.  You could make this entry in any of the Accounts involved but it's probably easiest to do this as a split entry in the checking Account, entering the net deposit and then splitting that deposit out to the other Accounts and a Category of your choosing.
    Of course accounting for a house sale really is more complex than that if you try to break out all of the components of the sale, like property taxes (either a credit to you for taxes you've paid or a charge for taxes you owe), interest paid in closing and so forth.
  • volvogirl
    volvogirl SuperUser ✭✭✭✭✭
    Did you have a loan on it?  Did you get any cash out of the sale? I would start by entering a transaction in the bank account where you got the deposit.  

     Say you sold the house for $150,000 minus 20,000 in fees so you have 130,000 Net Proceeds.  And you paid off a 70,000 loan and have 60,000 cash left over.   And you have 90,000 in your House Asset Account for the cost+improvements. 

    Bank Account Deposit...….+60,000

    Split out to:
    Loan Payoff.......................... +70,000
    Various Fee Categories……..+20,000
    House Asset Acct……..….....(90,000)
    Profit Income Category……..(60,000)

  • Diana Salmon
    Diana Salmon Member ✭✭
    It was all cash. I got it worked out. Took me a while but got closing costs and payments, etc. accounted for. The bank and quicken match beautifully now. I think I'll go play some games now. Thanks
  • Diana Salmon
    Diana Salmon Member ✭✭
    No mortage. I had the house tax assessment added into the net worth and added the amount needed to bring it up to the sale. Transferred from house account to the checking acct. to which it was wired. Then I had a transaction of house closing and put in the decreases of net for the various subtractions like the realtor fee in split window to account for each item. Worked beautifully.
This discussion has been closed.