Loan payoff

LisaS1

How do I enter that we sold our house and paid off the loan?

Tom Young

Let’s take the simplest possible example:

1. You have your old house in Quicken at a cost of $200,000
2. You have an existing mortgage loan with a balance of $75,535
3. You sold the house for $257,000
4. Fees associated with the sale were $12,500
5. Net selling price therefor is $244,500 ($257,000 - $12,500)
6. Net deposit in the checking account is $168,965 ($244,500 - $75,535)
7. Your profit on the sale is $44,500 ($244,500 - $200,000)

The absolute simplest way of reflecting this would be a series of entries in the checking account like this:

There's no "Gain on Sale of House" Category in Quicken, I simply created it to make a balanced accounting entry.

Of course in the real world transactions are rarely this simple and there's frequently expenses allocated between buyer and seller, like property taxes that you need to recognize in your file, using the correct Category.

You could also just enter the net deposit and split that deposit in the same fashion as I've done with separate entries. This is just a little less confusing.

Tom Young

Let’s take the simplest possible example:

1. You have your old house in Quicken at a cost of $200,000
2. You have an existing mortgage loan with a balance of $75,535
3. You sold the house for $257,000
4. Fees associated with the sale were $12,500
5. Net selling price therefor is $244,500 ($257,000 - $12,500)
6. Net deposit in the checking account is $168,965 ($244,500 - $75,535)
7. Your profit on the sale is $44,500 ($244,500 - $200,000)

The absolute simplest way of reflecting this would be a series of entries in the checking account like this:

There's no "Gain on Sale of House" Category in Quicken, I simply created it to make a balanced accounting entry.

Of course in the real world transactions are rarely this simple and there's frequently expenses allocated between buyer and seller, like property taxes that you need to recognize in your file, using the correct Category.

You could also just enter the net deposit and split that deposit in the same fashion as I've done with separate entries. This is just a little less confusing.

LisaS1

Thank you!