Quickbooks: Entering a HUD-1 Sheet

2 Replies

Hey guys, this one is making feel pretty dumb. I am trying to enter all the information from my HUD-1 sheet into Quickbooks. I've watched a couple videos on other people doing it, and it's just not clicking. There are a lot of entries on the sheet, and I have no idea what they all need to be assigned to. Is it easiest to just do a big journal entry on this one?

Any help is appreciated!

@Daniel Rutherford Recording HUD is not a simple entry so I recommend running it by your accountant to make sure you are categorizing them correctly.

But in general, here's how you should break it down. 

Property Costs (Fixed assets) [Debit]

Escrow EMD (Other Current Asset) [Credit] - EMD (will offset entry for EMD payment)

Mortgage Payable (Liability) [Credit] - Loan principal

Loan Costs (Other Asset) [Debit] - Closing costs (loan related, like lender fees, etc). This will be amortized over the loan period.

Escrow (T&I) [Debit] - Any escrow deposit required by lender at closing

Interest Expense [Debit] - Prepaid interest paid at closing

Insurance Expense [Debit] - Prepaid insurance paid at closing

Property Tax Expense [Debit/Credit] - Any property taxes paid at closing

Utilities Expense [Debit/Cred] - Any utilities paid at closing

Rent Income [Debit/Credit] - any rent proration

Security Deposit [Debit/Credit] - any tenant security deposit

Checking (or whatever account you use) [Debit/Credit] - cash payout or received at closing

There could be more to it but those are the items I can think of on top of my head. And yes it is recommended that this should be entered as a big journal entry. If your HUD settlement has debit and credit column, then you should enter it like that. Hope this helps!

@Daniel Rutherford

There sure are a lot of entries on the closing disclosure(HUD-1).

When purchasing a piece of real estate and it is for investment purposes, they normally fall under 3 categories

1) Added to Basis - I.E. purchase price, title work, etc
2) Currently Expensed - I.E. Insurance, real estate taxes, etc
3) Pre-paid Asset account - I.E. Payments made into escrow, etc

When doing the books, you need to make sure they fall into the appropriate account.