Track everything related to your rentals - property value, bank accounts, loans, documents, tenant lists, income, and expenses. The rental dashboard shows the. Dec 21, - When you own rental property, staying on top of the numbers simplifies all aspects of managing your business, from rent collection and property maintenance costs to tax payment calculations. Quicken's Rental Property Manager software has all the tools a landlord needs to handle. Jun 2, - Property management software, like Quicken's Home & Business, allows users to merge their personal and business accounting in a single place. Landlords can store tenant and vendor contact information, as well as information on lease terms and records of security deposits and rent.
Nelson 5 Comments No matter which version of the software you use, Quicken provides a handy format for tracking real estate investments such as income property. By using the Quicken software for this recordkeeping, you can prepare summaries of income and expenses by property for monitoring your individual real estate investments.
You can also easily complete the Schedule E income tax form you use or make it easier for your tax accountant to prepare your Schedule E tax form. Moreover, if you set up asset accounts for each of the individual real estate properties you hold and then use these to record both capital improvements and any depreciation, you can easily calculate any gains or losses stemming from the sale of a piece of real estate. This short discussion, therefore, describes the basics of how you do this in any version of the Quicken software.
However, an important note: Describing Your Real Estate Holdings To track income and expense by individual real estate property, you need to do two things: Set up the income and expense categories needed to describe this income and expense. You should use the same income and expense categories that show on your Schedule E tax form. Set up a class for each individual real estate property, and then, whenever you categorize an income or expense item for a particular property, identify the property by providing the class.
Both tasks are described in the paragraphs that follow. Setting Up Categories for Real Estate Investments Depending on what you told Quicken when you installed it, Quicken may already have the categories you need on its category list. To set up categories for tracking the income and deductions related to your real estate investments, start Quicken and follow these steps: Use the Category Name text box to provide a brief name for income or deduction item.
If you need to describe the category in additional detail, use the optional Description text box. Click OK. Quicken adds the new category to the list shown in the Category List window.
Setting Up Classes for Real Estate Investments To set up classes for your real estate investments, start Quicken and follow these steps: Click the New command button to display the Set Up Class dialog box. Use the Name text box to provide a brief name for the real estate property. Quicken adds the new class to the list shown in the Class List window.
Setting Up Subclasses for Real Estate Investments You might also want to set up subclasses, which are simply classes used to classify the components of a class, for your real estate investments. For example, if you set up a class for Winston Apartments but want to separately track income and expenses related to a certain type of tenant, such as low-income tenants, you could create two subclasses: To set up a subclass, you take the same steps you use to set up a class.
Keep in mind, however, that you can use only 31 characters to enter categories, subcategories, classes, and subclasses. All this information goes into the Category combo box, so use short names. For example, suppose you rent some apartments to qualified low income tenants in order to meet either local or federal requirements. Quicken lets you use subclasses and classes interchangeably.
You can use a class as a subclass and a subclass as a class. Therefore, if you do choose to use subclasses, you need to be more careful in your data entry. To do this, simply enter both the income or expense category and the class name in the Category text box, separating the category from the class with a slash. Classes can be a little tricky for a couple of reasons.
So be careful to always use classes and subclasses, and if you find that a report shows unclassified amounts, use QuickZoom to locate the unclassified transactions you need to fix. Setting Up Real Estate Investment Accounts You can use Quicken accounts to track the adjusted cost basis of individual real estate investments. You calculate the gain or loss upon sale by subtracting the adjusted cost basis of a property from the net sales price.
To do this, set up a Quicken asset account for individual real estate properties. Usually, the easiest way to do this is to just categorize the check you write to pay for the improvement as a transfer to the house account. Related Articles: Filed Under: Accounting , Real Estate Tagged With: Nelson Stephen L. Nelson is the author of more than two dozen best-selling books, including Quicken for Dummies QuickBooks for Dummies.
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