Q:
Subject: Quicken Tips.
I need some help which I am sure is quite simple but I cannot figure out what I am doing wrong! I have Quicken Rental Property Manager and in my check register I make a payment to the bank for a mortgage on the property I am renting. This payment is split category with principal having the category of the loan account [loan] and interest categorized as “Mortgage Interest Expense” The problem is only the principal shows up in my loan account.
Do I need to create two subcatagories under my loan account [loan] such as “principle” and “ mortgage interest expense”
I am lost.
Any help is appreciated.
A:
It actually sounds as if you already have it set up properly. The principal portion of the loan reduces the liability balance of the loan and is the only portion of the payment that should be showing up in the loan's Quicken account register.
The interest portion of the payments is a period expense and should show up when you run an Income Statement (aka Profit & Loss) for a particular time period.
Your own professional tax advisor should be able to set up your Quicken so that it is easier to understand and coincides more closely with your tax returns.
Good luck.
Follow-Up:
Thanks for the quick replay Kerry and help. With your input and my looking at it again I think I am comfortable with what I have done.
Thank you very much!
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