How to split mortgage in QUIKBOOKS

[Matt Tallent]

Hey all,

I have an accountant but I like to throw my general questions in here. I do my Quikbooks and just send to my accountant during tax season. I still have to split up all the payments for the mortgage in 2018. It’s linked to my bank so each months payment is registered as on lump sump which includes taxes,insurance, pmi, principle, and interest. How should I record this just split up each payment and divide the taxes / insurance or should I do those as a lump sum. Thanks!

[Eamonn McElroy]

@Matt Tallent

@Liam Kinsolving

Actually payments to escrow are increases in a reserve account.  They're not expenses.

Monthly mortgage payments:

Debit: Mortgage Payable xxx

Debit: Interest Expense xxx

Debit: Escrow xxx (this is usually a current asset on the balance sheet)

Credit: Cash xxx

When property taxes and insurance come out of escrow it is an expense that reduces escrow:

Debit: Property Tax Expense xxx

Credit: Escrow xxx

End of year escrow balance per Quickbooks should reconcile to your statement from your mortgage holder.