Best way to set up a rental property account

I have a rental property which I manage.  Rents received are deposited into my checking account, maintenance costs are paid for from my checking account.If I set up a separate account for the rental property and record the activity only in this account, my checking account record is incorrect.  If I record all activity only under the checking account, I have to run reports to segregate the rental property activity if I want to see its net worth.  If I set up both accounts and record the activity in both, the total net worth is incorrect because the activity is accounted for twice, both income and expenses.
Is there a way in Quicken 2006 to create an account as a subset of another account, so that I can easily maintain the activity of the rental property separate from my other income and expenses, but so that all income and expenses are properly reflected in my checking account, which needs to be accurate to have any meaning to me?
Thanks,Mike H.

Answer

1 person found this helpful

"I have a rental property which I manage.  Rents> received are deposited into my checking account,> maintenance costs are paid for from my checking> account.> > If I set up a separate account for the rental> property and record the activity only in this> account, my checking account record is incorrect.  If> I record all activity only under the checking> account, I have to run reports to segregate the> rental property activity if I want to see its net> worth.  If I set up both accounts and record the> activity in both, the total net worth is incorrect> because the activity is accounted for twice, both> income and expenses> > Is there a way in Quicken 2006 to create an account> as a subset of another account, so that I can easily> maintain the activity of the rental property separate> from my other income and expenses, but so that all> income and expenses are properly reflected in my> checking account, which needs to be accurate to have> any meaning to me?"

There is really no need to have separate checking or credit card accounts for tracking rental income and expenses. I have tracked multiple rental properties <using QW Basic> and the income/expense items are co-mingled with my other items.The key is to properly categorize the income/expense items and then you can easily create customized reports to present desired summaries. Use the Memorize Report feature to save a report once you have it set up to your liking.QW has a comprehensive list of rental income and expense categories. If they are not currently visible in your category list you can add them. In the category list view, click on 'Add From List'. In the pop-up window scroll down the list 'Available Categories' to find 'Rental & Royalties'. Select the desired categories and 'Add' to you category list. These categories will carry the proper tax line assignments for Schedule E tax reporting. QW's Tax Schedule Report will include a header 'Schedule E' and under this header will be the itemized income and expenses for preparation of your Sched E tax forms.Do you anticipate acquiring additional rental properties down the road? If so, you will find it useful to use Classes to differentiate between rental properties. E.g., a class for a particular property might be '123Main'. Rental income for this propert might be categorized 'Income:Rents Received/123Main'. In setting up each class, you will assign 'Copy No's' to each class - 1,2,3,,,,. QW will then automatically subtotal the Sched E items for tax purposes by property.Bottom line, I think you will find QW does a very good job of handling rentals and without a lot of extra work. Again the key is setting up the categories <and classes if needed> and the customized reports.

Post back if you have further questions on this.
Was this answer helpful? Yes No
Default user avatars original d5efadcf497ea7b3d86c6f8d148d66633a29ce78fa8391af628adf32d9989354
JM , QW2016 & QM2016
SuperUser
2 additional answers

No answers have been posted

More Actions

People come to Quicken Community for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Do you still have a question?

Ask your question to the community. Most questions get a response in about a day.

Post your question to the community
or contact us