Record home improvements

Home improvements can be a large financial undertaking. Because these expenses often affect your property value, net worth, and capital-gains taxes when you sell, tracking them closely is a good idea.

1  Make sure you've set up an asset account for the house. Use the purchase price of the home as the starting balance.
2  In your checking account, enter the payment transaction for the improvement as a transfer to the house Asset Account.

For example, you enter the payment you made to a contractor as a transfer from your checking account to your Home asset account.

Money enters the payment as an increase in the house account.

How do I create an asset account?

How do I transfer money between accounts?