How to Record a Stock Sale with an Earnout in Quicken 2016

Unknown Member
edited May 2018 in Investing (Windows)
I have owned stock in a private company and we just sold and received payment.  However, up to 25% additional is subject to earn-out after 3 years.  One-half of that is paid if I am still here and the other half requires certain income thresholds to be achieved.  That portion is on a sliding scale and could just as easily be zero as it will be the full amount.  I can record the stock sale in Quicken, but I am not sure how to handle this ear


  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited May 2018
    Caveat:  I am not a CPA or tax pro, so consider this FWIW.

    I would want to know what the tax status is of that subsequent income.  Somehow I doubt that it is cap gains.  Assuming your 2016 numbers are clear as far as the basic sale go, I would be looking to have a new income category for the future payouts, just so that I could see those properly added and reported on whatever future tax line.  

    If you are looking for the "performance" of your investment in the business, that becomes a different question.  You can receive "dividends" and "Misc Income" from a security even though you do not currently own shares, so that might be a viable tool.

    An interesting question.  Keep us posted.
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