How do I account for increase in home value by purchasing a solar energy system?

corndog638
corndog638 Member ✭✭
Payments are made to contractor by bank ACH transactions.

Comments

  • NotACPA
    NotACPA SuperUser ✭✭✭✭✭
    edited June 2022
    Do you currently have a Home account set up in Q?
    How is that liability set up in Q?
    What is shown as the CATEGORY for those ACH payments?
    Because, in my Q, I'd have the purchase amount set as a transfer from the Liability account to the HOME account and then record those ACH payments as reducing the Loan/Liability.
    Q user since DOS version 5
    Now running Quicken Windows Subscription, Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    How do you account for other changes in your house value? 

    For myself, I keep an asset account that represents my primary home.  Assuming the solar installation is not otherwise being financed(?), I would then consider the payments to the contractor as transfers from the checking account to that Home asset account reducing the checking account and increasing the value shown for the Home account.  
  • [Deleted User]
    edited June 2022
    @corndog638 - if you use the Zillow "Zestimate" in Quicken, then updating the home asset manually in Quicken won't work.  If you do use Zillow, then click on the link "Update your property information in Zillow" and update the home improvement there.  Then the "Zestimate" will include (at least theoretically) the addition of solar panels.
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser ✭✭✭✭✭
    I do it differently. I have a House account which represents my current adjusted basis in the property. Something like a solar install increases the basis, so I just add a self-referential [House] transaction to increase the basis. I would rather show the actual payments to the solar company as categorized transactions, not transfers. Contrariwise, the house basis decreases by the amount of the residential  energy tax credit.
    I have a second account in Quicken to account for appreciation of my property based on the Zestimate. This is just for fun and is a Separate account except for when I want to admire my wealth. The total of the two accounts adds up to the Zestimate.
    The Zillow connection in Quicken is an ill-advised misfeature. Tracking the basis in your home is important for tax reasons when you sell. A Zestimate-based account does not preserve that information.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription (US) on Win10 Pro.
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    I do it differently. ... I would rather show the actual payments to the solar company as categorized transactions, not transfers. ...
    Curious what category you would use -- Maybe something like 'Home Improvements'  Any differentiation between long term improvements (solar panels) vs maintenance improvements (new kitchen faucet)?
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser ✭✭✭✭✭
    Mq_lurker said:
    I do it differently. ... I would rather show the actual payments to the solar company as categorized transactions, not transfers. ...
    Curious what category you would use -- Maybe something like 'Home Improvements'  Any differentiation between long term improvements (solar panels) vs maintenance improvements (new kitchen faucet)?
    Exactly right. I have subcategories of Home such as Improvements, Repairs, & Maintenance, and further sub-subcategories of those.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription (US) on Win10 Pro.
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