I just lost my bookkeeper on short notice and need to figure out how to setup my new house and mortgages in Quicken 2004 Deluxe. Thanks in advance. Here's the details...
First Mortgage - Interest Only Second Mortgage - More like a line of credit
What's the best way to set these up (I guess with the house somehow liked to them)?
You'll need the following:
1) an ASSET account for the house itself 2) a LIABILITY account for the principal on the 1st mortgage 3) an EXPENSE category for the interest on the 1st mortgage 4) an EXPENSE category for real estate taxes 5) other EXPENSE categories (as desired) for other house related expenses (repairs, utilities, homeowner association fees, etc., as appropriate) 6) possibly, an ASSET account for any escrow payments included in your 1st mortgage 7) a LIABILITY account for the 2nd mortgage 8) you might want a 2nd EXPENSE category for the interest on the 2nd. (It's also possible to use the category set up in item 3 ... and distinguish the 2 loans within the category by using classes).Figure out on your settlement statement which line items are ASSETS, which are LIABILITIES and which are EXPENSES (and whether the expenses are tax-related). Your tax advisor, or the settlement agent, can probably help you determine what's what.
db
Should I run a Quicken wizard to setup these mortgage accounts or do it manually?
danbrown wrote:
I've been doing this for so long that I set up everything manually, so I can't really comment upon the wizard.
BTW, my preference, re: the 2nd loan interest expense category, would be to set up a separate category. I only mentioned the possibility of double-using the 1st expense category because it does, technically, exist.
db
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