Mortgage financing question

Question

I am getting ready to finance the sale of my home. Does Quicken have a way to generate 1099-int forms for me and the purchaser? Does it have an amortization form (this is to be a 10 year mortgage, but will probably be paid off before then)? I assume I will only need to claim the Interest Income on my taxes but not the principal paid to me, but I'd like to be able to track this information. I planned to just use a spreadsheet on my computer, then realized Quicken may offer a tool which will do this.

Sceptic · Answer

@joyL Quicken includes a Lending Loan account type designed for situations where you are the lender. You can set up the loan amount, interest rate, term, and payment schedule, and Quicken will create an amortization schedule showing the principal and interest portions of each payment as well as the remaining balance.

This can be useful for a 10-year mortgage that may be paid off early because Quicken will track each payment and adjust the remaining balance as you record additional principal payments.

For taxes, the principal portion of the payments is generally a return of your investment and is not reported as income, while the interest portion is typically reported as interest income. Quicken can track the interest received and include it in tax-related reports if your categories are set up appropriately.

However, Quicken is not tax preparation software and does not generate IRS Form 1099-INT for the borrower. You would generally need to prepare any required tax forms outside Quicken using tax software, a filing service, or your tax professional. Quicken's role is primarily recordkeeping and reporting. The tracked interest income can provide the information needed for year-end reporting.

To explore the Quicken setup, see Help → Quicken Help and search for "lending loan", or create a non-cash asset account and convert it to a Lending Loan.

https://info.quicken.com/win/how-do-i-set-up-a-loan-for-which-i-am-the-lender

Jim_Harman · Answer

Please see this Support article

https://info.quicken.com/win/how-do-i-set-up-a-loan-for-which-i-am-the-lender

Is that what you are looking for?