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Level 1

Fixed Asset

I need to set up a fixed asset (building) with a mortgage loan. The loan I have been paying for approximately 9 months but haven't been recording it back to the fixed asset account. Is there an easy way to fix that without having to delete all the mortgage checks wrote? Also, the mortgage is split between a bank loan and an owner finance. Would I need to set up 2 accounts for the building or separate one for building and one for the land? My accountant told me enter this and I am totally lost on how to make it come out correctly.

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Best answer April 16, 2019

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Highlighted
Moderator

Fixed Asset

Sending good vibes to you, brookew_01.

I'm here to help you with setting up an account fora mortgage loan in QuickBooks Desktop.

 

You can set up a mortgage account then enter the loan amount as an opening balance. After that, edit the checks you wrote to allocate them.

 

To set up a mortgage account:

 

  1. From the QuickBooks Lists menu, choose Chart of Accounts.
  2. Right-click anywhere and click New.
  3. Create a loan account.
    1. Click the Other Account Types drop-down and choose Long Term Liability, then click Continue.
    2. In the Name field, enter the name of the loan.
    3. Click the Enter Opening Balance button and in the Opening Balance field, enter the full (beginning) amount of the loan.
    4. In the as of field, enter the loan origination date.
    5. Click Save & New.
  4. Create an escrow account.
    1. From the Type drop-down list, choose Other Current Asset.
    2. Enter a name for the account (Escrow, for example), the Opening Balance amount (if there have been any prior payments), and the as of date.
    3. Click Save & New.
  5. Create an expense account.
    1. From the Type drop-down list, choose Expense.
    2. Enter a name for the account (Interest, for example).
    3. Click OK.

You can get detailed information in this article: https://quickbooks.intuit.com/community/Help-Articles/Set-up-a-mortgage/m-p/202617.

 

If you wish to affect the mortgage account and the asset account, you can do this through journal entry, however, the assistance of an accountant is a must.

 

You may find this article helpful: https://quickbooks.intuit.com/community/Help-Articles/Manually-track-loans/td-p/201281.

 

Hope I helped you get all straightened out today. Let me know if you have other questions about mortgage loan in QuickBooks Desktop. You can always count on me.

View solution in original post

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Community Champion

Fixed Asset

When you purchase property it is a Fixed Asset but you have to separate Land from Building and Improvements. Your basis in land can not be depreciated or cost recovered until you sell. Tax assessed values are a recognized way to separate land from building. You do this after all original charges - closing costs - are added to the asset.

 

And you actually have two loans, one with bank, one with seller. So you need to create two accounts

 

 

You should avoid entering a beginning balance for s loan but should instead post the money movement as it happened- example loan funds buy the building or pay for a remodel.

 

You do not have to delete the already recorded mortgage payment checks - just reassign the details to principal and interest according to the amortization schedule or bank statements.

View solution in original post

4 Comments 4
Highlighted
Moderator

Fixed Asset

Sending good vibes to you, brookew_01.

I'm here to help you with setting up an account fora mortgage loan in QuickBooks Desktop.

 

You can set up a mortgage account then enter the loan amount as an opening balance. After that, edit the checks you wrote to allocate them.

 

To set up a mortgage account:

 

  1. From the QuickBooks Lists menu, choose Chart of Accounts.
  2. Right-click anywhere and click New.
  3. Create a loan account.
    1. Click the Other Account Types drop-down and choose Long Term Liability, then click Continue.
    2. In the Name field, enter the name of the loan.
    3. Click the Enter Opening Balance button and in the Opening Balance field, enter the full (beginning) amount of the loan.
    4. In the as of field, enter the loan origination date.
    5. Click Save & New.
  4. Create an escrow account.
    1. From the Type drop-down list, choose Other Current Asset.
    2. Enter a name for the account (Escrow, for example), the Opening Balance amount (if there have been any prior payments), and the as of date.
    3. Click Save & New.
  5. Create an expense account.
    1. From the Type drop-down list, choose Expense.
    2. Enter a name for the account (Interest, for example).
    3. Click OK.

You can get detailed information in this article: https://quickbooks.intuit.com/community/Help-Articles/Set-up-a-mortgage/m-p/202617.

 

If you wish to affect the mortgage account and the asset account, you can do this through journal entry, however, the assistance of an accountant is a must.

 

You may find this article helpful: https://quickbooks.intuit.com/community/Help-Articles/Manually-track-loans/td-p/201281.

 

Hope I helped you get all straightened out today. Let me know if you have other questions about mortgage loan in QuickBooks Desktop. You can always count on me.

View solution in original post

Highlighted
Community Champion

Fixed Asset

When you purchase property it is a Fixed Asset but you have to separate Land from Building and Improvements. Your basis in land can not be depreciated or cost recovered until you sell. Tax assessed values are a recognized way to separate land from building. You do this after all original charges - closing costs - are added to the asset.

 

And you actually have two loans, one with bank, one with seller. So you need to create two accounts

 

 

You should avoid entering a beginning balance for s loan but should instead post the money movement as it happened- example loan funds buy the building or pay for a remodel.

 

You do not have to delete the already recorded mortgage payment checks - just reassign the details to principal and interest according to the amortization schedule or bank statements.

View solution in original post

Highlighted
Level 1

Fixed Asset

we are a church and own a building and a parsonage straight out.

how do you record the value of this asset?

Highlighted
QuickBooks Team

Fixed Asset

Thanks for giving me the opportunity to help with your journal entry, @aligafwc.

 

 You can create a journal entry to record and track the depreciation of the fixed asset. Let me show you how it works.

 

You can create an asset account and create the expense transaction. Before you record the depreciation, you have to add Other Expense account in Chart of Accounts (COA). This is for depreciation expense.

 

Here’s how to record the depreciation in the Journal entry. (Please refer to the screenshots below)

 

  1. On your QuickBooks Online homepage, go through the Hamburger icon and select + New tab.
  2. Select Journal Entry and on Debit the Expense account.
  3. Credit the Asset account.
  4. Hit Save.

 

 

 

Also, you can refer to this article for more information about the steps: Depreciate assets in QuickBooks Online.

 

Please click the Reply button if you need further assistance with tracking depreciation on your fixed assets. Take care.

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