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How to set up HELOC (home equity line of credit). Not sure how to post the 2nd mortgage, principal/interest payments, or interest charged.

Forum|Forum|7 years ago
December 11, 2018
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Best answer by qbteachmt

"I took out a HELOC on my personal residence and used the proceeds for renovations on existing rental properties. I would think tracking this in QB would be appropriate."

It is Appropriate to track it if the Business Property was liened.

"Apologies for not being more clear in my question."

You still didn't tell us the Business Tax Entity type, though.

Let me give you an example:
You and your Brother have an LLC and have rental property; your Personal Debt does not belong to the LLC nor to your brother. You Loaned To the LLC, and the LLC owes You, not your HELOC.

qbteachmtAnswer

"I took out a HELOC on my personal residence and used the proceeds for renovations on existing rental properties. I would think tracking this in QB would be appropriate."

It is Appropriate to track it if the Business Property was liened.

"Apologies for not being more clear in my question."

You still didn't tell us the Business Tax Entity type, though.

Let me give you an example:
You and your Brother have an LLC and have rental property; your Personal Debt does not belong to the LLC nor to your brother. You Loaned To the LLC, and the LLC owes You, not your HELOC.

qbteachmt

HELOC is a personal debt. QB is used for Business financial management.

You don't manage Personal debt in a business data file at all and the business doesn't pay the HELOC directly.

Or, are you managing property, such as an LLC?

A

arkvalleyinfoAuthor

I took out a HELOC on my personal residence and used the proceeds for renovations on existing rental properties. I would think tracking this in QB would be appropriate. Apologies for not being more clear in my question. Thanks

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