How do I record the sale of a piece of land?

TonyTony Member
edited October 2018 in

Comments

  • johncrosjohncros Member
    edited January 2018
    do you have an asset account in quicken that reflects the ownership/value of the property?
  • TonyTony Member
    edited May 2018
    Yes
  • johncrosjohncros Member
    edited October 2018
    Since you did not mention them, I am assuming there were no corresponding quicken-tracked loans that were paid off at closing.
    In the simplest case, go to your asset account and begin to record the sale as a decrease in asset value.
    In order to make this a transfer of value from your land asset to whatever account (checking, savings, investment, etc.) where you deposited the proceeds, you could enclose the name of the account in brackets and type that into the category field (like [checking]). That will create a corresponding deposit transaction in your checking account and decreases the value of the asset account. If you have sold all interest in the property, the final value of the asset account should be zero.
    Unfortunately, asset accounts do not seem to support split transactions. If you want to track other costs associated with the sale, you have to enter those separately as decreases in the asset account with their associated categories.
    <click> the <clr> column on all the transactions in the asset register until they show as reconciled and then <hide> the account if you would like.
  • J_MikeJ_Mike SuperUser ✭✭✭✭✭
    edited December 2016
    johncros said:

    Since you did not mention them, I am assuming there were no corresponding quicken-tracked loans that were paid off at closing.
    In the simplest case, go to your asset account and begin to record the sale as a decrease in asset value.
    In order to make this a transfer of value from your land asset to whatever account (checking, savings, investment, etc.) where you deposited the proceeds, you could enclose the name of the account in brackets and type that into the category field (like [checking]). That will create a corresponding deposit transaction in your checking account and decreases the value of the asset account. If you have sold all interest in the property, the final value of the asset account should be zero.
    Unfortunately, asset accounts do not seem to support split transactions. If you want to track other costs associated with the sale, you have to enter those separately as decreases in the asset account with their associated categories.
    <click> the <clr> column on all the transactions in the asset register until they show as reconciled and then <hide> the account if you would like.

    One additional step may be required. That is to adjust the asset account balance to reflect the actual selling price; i.e., the 'true' asset value.
    You can do this by entering the adjustment (pos or neg) and, in the category field, indicate a transfer to/from the account itself.
    The asset account should zero out.
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  • TonyTony Member
    edited December 2016
    johncros said:

    Since you did not mention them, I am assuming there were no corresponding quicken-tracked loans that were paid off at closing.
    In the simplest case, go to your asset account and begin to record the sale as a decrease in asset value.
    In order to make this a transfer of value from your land asset to whatever account (checking, savings, investment, etc.) where you deposited the proceeds, you could enclose the name of the account in brackets and type that into the category field (like [checking]). That will create a corresponding deposit transaction in your checking account and decreases the value of the asset account. If you have sold all interest in the property, the final value of the asset account should be zero.
    Unfortunately, asset accounts do not seem to support split transactions. If you want to track other costs associated with the sale, you have to enter those separately as decreases in the asset account with their associated categories.
    <click> the <clr> column on all the transactions in the asset register until they show as reconciled and then <hide> the account if you would like.

    Thanks for your replies. What I did was put in the purchase price in the asset account (which I did when I bought it) as an increase, and then put the net amount I received in that account as a decrease.  That leaves a negative number, which is my gain, because the sale price was greater than the purchase price. Then, in the bank account I split the deposit, putting the sale price in as a deposit, but then putting the closing cost in the split as a negative number, so the net amount in the bank was correct and the closing costs do show in my tax reports.  Now, I may just zero out the asset account.
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