Shared asset with brother, mortgage involved, not mine, how to account for that?

[Aaron Laws]

(Not an accountant)

I hate to speak out before a more experienced hand, but then again, I
certainly won't speak *after* another! Perhaps I can stumble forward to
provide a starting place for one of the greater.

When rent comes in, if the rent cheque is written to your brother, then he
writes you a cheque:

assets:chequing    R/2
revenue:rent                     R/2

Where R is the full rent amount. When the mortgage payment is due, assuming
you both write a cheque to the mortgage holder:

assets:myoffice     (P/2-I/2)+E
expense:interest     I/2
assets:chequing                        P/2+E

Where P is the full mortgage payment, I is the interest acrued, and E is
any extra payment you make. When work is done or bills come in for the
building:

expense:repairs     B/2
assets:chequing              B/2

Where B is the amount of the bill.  Does that make sense? With this scheme,
the timing of rent payments and mortgage payments is disconnected: you can
pay mortgage quarterly and earn rent weekly, for instance. I'm assuming you
split the rent income and mortgage payment down the middle. I'm also
assuming that your brother would be okay with you paying extra and owning
more of the building with extra payments!






In Christ,
Aaron Laws

On Fri, Oct 3, 2014 at 9:38 AM, Daniel Farfán Muñoz <dfarfanmunoz at gmail.com>
wrote:

> Thanks. We are doing business as ourselves, no company involved.
>
>
> 2014-10-03 10:34 GMT-03:00 Aaron Laws <dartme18 at gmail.com>:
>
>> (Not an accountant.)
>>
>> Is there a business or company involved, or are you two doing business as
>> yourselves?
>>
>>
>> In Christ,
>> Aaron Laws
>>
>> On Fri, Oct 3, 2014 at 6:24 AM, Daniel Farfán Muñoz <
>> dfarfanmunoz at gmail.com> wrote:
>>
>>> Hi everyone, I hope someone can help me with this:
>>>
>>> My brother and I bought an office together. I did a downpayment of 5% of
>>> the value of the office. My brother paid the other 5%. He got a mortgage
>>> of
>>> 90%. We rent the office to someone else, I receive the monthly rent, and
>>> then I transfer the money (minus some operational charges) to his account
>>> so he can pay the mortgage.
>>>
>>> So, I own the 5% of the value of the office, plus some money I earn from
>>> the rent. But how do I account for that in gnucash? How do I know how
>>> much
>>> of the office I own? Or how much I'm earning by renting it?
>>>
>>> Thanks in advance.
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>>
>>
>