Best way to categorize rental income and mortgage
Is there a way to categorize rental income to more clearly define monthly bills since the rental income takes care of the mortgage payment and HOA fees?
Comments
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@DDel, thanks for posting your inquiry to the Community!
If I had a rental property and a mortgage I was paying on that property, I would personally create Categories for that property. You can create an Income Category for the rent payments, and Expense Categories for the mortgage and HOA payments. I would likely also create Expense Categories for repairs and other expenses that may occur. That way, I'd be able to track everything going into the property and what I'm receiving back from the rent payments. You can also exclude the transactions from your Spending Plan if you'd like to keep the rental property stuff separate from your personal budget.
I hope the helps!
-Coach Natalie
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I agree with most of what @Coach Natalie says, but how you handle the mortgage payment will depend on whether you set up a mortgage account in Simplifi.
If you do set up a liability account for your rental mortgage, then part of the mortgage payment will be a transfer to that account. Assuming your payment includes PITI, the the Principle part will go to the mortgage account while the Interest, Taxes, and Insurance will all go into expense categories.
Regardless of whether you set up a mortgage account, the interest, taxes, and insurance payments are all deductible expenses — but the principle payment is not. It is repayment of a loan.
(Note: the deduction for taxes may be limited… Google "SALT deduction.")
DryHeat
-Quicken Classic (1990-2020), CountAbout (2021-2024), Simplifi (2025-…)1
