Track P/L on Rental Property

LostCanuck
LostCanuck Member ✭✭✭
edited October 14 in All Things Canadian (Windows)

Hi,

I'm using Quicken Canada edition version R63.22

I'm trying to create a P/L report for a rental property. I can track all the expenses without any issue; including the interest paid on the mortgage.

However, I can't figure out a way to track the principal paid against the mortgage. I have a payment to the mortgage company for interest (tracked as category Mortgage:Interest). The principal is transferred to the mortgage (liability) account to decrease the principal owned.

If I use "mortgage:principal" category it will track the principal as a category but won't transfer to the principal to the mortgage liability account to decrease the overall mortgage principal.

Any suggestions on how to make this report work

Cheers,

Randy

Answers

  • Arctic Hare
    Arctic Hare Quicken Windows Subscription SuperUser ✭✭✭✭

    It's working the way it is intended to work. When you pay principal, you are trading an asset (cash) for a reduction in liability (mortgage principle outstanding). Principal should have no affect on P/L; only the cost of borrowing should be considered in your P/L.

    Example: borrow $100 from the bank @ 6% annual interest. Invest that borrowed mony is a stock. One year later, sell the stock for $110. Pay the bank back $6 interest and $100 principal. What's your P/L? $10 - $6 = $4. Your principal repayment was not considered in determining P&L.

  • LostCanuck
    LostCanuck Member ✭✭✭

    Thanks @Arctic Hare . I probably used the wrong terminology when I said P/L. What I'm looking to do is create a "single report" that will show my expenses (interest, management fees, operating fees, etc) along with how much my mortgage has gone down (principal I've gotten back). I can do it from two separate reports; expense report and a principal report (mortgage - principal).

    My apologies for not using the correct terminology.

    Cheers,

  • Arctic Hare
    Arctic Hare Quicken Windows Subscription SuperUser ✭✭✭✭

    Without getting into a discussion or debate about the merits of what you are trying to do…

    On the Advanced tab of the customization window for reports is the ability to include Internal Transfers. Internal Transfers are normally excluded because they aren't income or expenses, but this feature can be used to do things like you are trying to do. I haven't tested it explicitly, but I expect you will be able to use this to generate what you are seeking in a report.

    image.png
  • UKR
    UKR Quicken Windows Subscription SuperUser ✭✭✭✭✭

    If you're looking at your Planning tab / Budgets view, you can make the transfer payment of mortgage principal appear in the Budgets view as if it was an expense.
    Using the Manage Budget Categories button, just add Transfers Out: TO [name of mortgage account]

  • LostCanuck
    LostCanuck Member ✭✭✭

    Thanks everyone

This discussion has been closed.

Categories