cancel
Showing results for 
Search instead for 
Did you mean: 

Reply to message

View discussion in a popup

Replying to:
Frequent Explorer *
Solved

Split accounting for owner-occupied duplex

I own, live in, and rent out half of a duplex. What's the cleanest way to track this in QuickBooks considering I track the business only and don't use QuickBooks for me personal finances?

 

I only see two options:

 

Create the fixed asset and mortgage at half and then input everything halved as well. Nothing would match reality but it would correctly show the assets/liability amounts.

 

Input the asset and mortgage accurately and then input amounts split between draw and business accounts. Use a journal entry to offload half the asset and liability into draw somehow?

 

In short, should I forget about reality and just input the property as half in the first place and account for it that way or input the property as it really is and use some form of accounting entries such that the assets/liabilities/payments all report out properly or is there an even better option I haven't thought of?

 

I understand this is subjective and, I believe, one could do it either way, but not sure if there's any wisdom as to which provides a better outcome before I go to far down the road either way.