Turn on suggestions
Auto-suggest helps you quickly narrow down your search results by suggesting possible matches as you type.
Showing results for
Solved! Go to Solution.
@john-pero wrote:
You do not need to split the principal portion of the payment as long as you split the interest and depreciation. Instead of splitting it by Class your personal share should be equity. Any money out of business to or for you is owner draw and so if interest is $6000/ yr then $3000 is interest expense and $3000 is owner draw. Same with depreciation, taxes and other expenses. The duplex is still a single class but you split at the account level
I would quibble on the point of splitting depreciation, you do not depreciate personal property
When this asset was set up, only half of the mortgage and down payment should feed the fixed asset for the rental portion, the other half is equity draw. and the full amount of the mortgage is the liability offset
then the rental half needs to be broken down in the chart of accounts, all these fixed assets type accounts
12234-B some street
>> land
>> improvements (building, landscaping, etc)
>> >> accumulated depreciation improvements
Then depreciation is only calculated on the cost of the improvements for the rental portion.
Insurance is another issue
If you have landlords insurance for just the rental portion, then the premium is an expense
however, if you have a homeowner policy that covers the whole building, then half that premium is an expense
Taxes of course is 50/50
You do not need to split the principal portion of the payment as long as you split the interest and depreciation. Instead of splitting it by Class your personal share should be equity. Any money out of business to or for you is owner draw and so if interest is $6000/ yr then $3000 is interest expense and $3000 is owner draw. Same with depreciation, taxes and other expenses. The duplex is still a single class but you split at the account level
@john-pero wrote:
You do not need to split the principal portion of the payment as long as you split the interest and depreciation. Instead of splitting it by Class your personal share should be equity. Any money out of business to or for you is owner draw and so if interest is $6000/ yr then $3000 is interest expense and $3000 is owner draw. Same with depreciation, taxes and other expenses. The duplex is still a single class but you split at the account level
I would quibble on the point of splitting depreciation, you do not depreciate personal property
When this asset was set up, only half of the mortgage and down payment should feed the fixed asset for the rental portion, the other half is equity draw. and the full amount of the mortgage is the liability offset
then the rental half needs to be broken down in the chart of accounts, all these fixed assets type accounts
12234-B some street
>> land
>> improvements (building, landscaping, etc)
>> >> accumulated depreciation improvements
Then depreciation is only calculated on the cost of the improvements for the rental portion.
Insurance is another issue
If you have landlords insurance for just the rental portion, then the premium is an expense
however, if you have a homeowner policy that covers the whole building, then half that premium is an expense
Taxes of course is 50/50
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
For more information visit our Security Center or to report suspicious websites you can contact us here