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We have loaned our son money to buy a house. I have set up that amount on the asset side. But the money that comes from his account that goes into our account is on my quicken program, and the payment goes from one checking account to the other on a monthly basis. How can it go to the asset account as well? How can it go to two different accounts? I am using Quicken 2015 for Windows.

Comments

  • UnknownUnknown Member
    edited September 2017
    You can't.

    For you, you have INCOME monthly from your son's loan and in turn is debited from the asset account...which would be a transfer from the asset account to your checking account.

    But because you have your son's checking account in Quicken comingled with YOUR Quicken data, you can't do the above.  You can't have one total transaction go to three accounts (not without using a split transaction, which doesn't apply here).

    I would just make a transfer from your son's checking account to your checking account...resulting in a zero gain in income.  

    Then I would go to the asset account and create an entry as a decrease for the amount of the payment and just use the same asset account in square brackets...such as [Loan].

    Quicken will tell you that you are using the account category the same as the account you are in, but that's OK.

    And I have one question for you...if your son is old enough to have his own home (thanks to you), why is his checking account in YOUR Quicken...and why are you handling his finances for him?
  • NotACPANotACPA SuperUser ✭✭✭✭✭
    edited October 2018
    Not only are you NOT able to direct your son's payment to the Asset (House value) account, you don't WANT it to go to that account.

    When you sold the house, you should have closed out that Asset (since you no longer own it) and created an ASSET type account for the amount of the loan that you made.  Then, see LENDER LOAN in Q help for how to go the rest of the way.

    Your son now owns the House asset, and his making payments to you doesn't impact the value of the house in any way ... it merely reduces the value of your Asset (the loan) and transfers some of that money to your checking account.  Additionally, any interest that he pays would need an INCOME category to reflect that.

    The LENDER LOAN, in Q, can set up the scheduled payment, and the full amortization schedule, for each of your son's payments.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • UnknownUnknown Member
    edited March 2017
    gmalis1 said:

    You can't.

    For you, you have INCOME monthly from your son's loan and in turn is debited from the asset account...which would be a transfer from the asset account to your checking account.

    But because you have your son's checking account in Quicken comingled with YOUR Quicken data, you can't do the above.  You can't have one total transaction go to three accounts (not without using a split transaction, which doesn't apply here).

    I would just make a transfer from your son's checking account to your checking account...resulting in a zero gain in income.  

    Then I would go to the asset account and create an entry as a decrease for the amount of the payment and just use the same asset account in square brackets...such as [Loan].

    Quicken will tell you that you are using the account category the same as the account you are in, but that's OK.

    And I have one question for you...if your son is old enough to have his own home (thanks to you), why is his checking account in YOUR Quicken...and why are you handling his finances for him?

    The checking account in Quicken is a transfer account that both of us have access to. He has another independent checking account and handles his own finances.
  • UnknownUnknown Member
    edited March 2017

    Not only are you NOT able to direct your son's payment to the Asset (House value) account, you don't WANT it to go to that account.

    When you sold the house, you should have closed out that Asset (since you no longer own it) and created an ASSET type account for the amount of the loan that you made.  Then, see LENDER LOAN in Q help for how to go the rest of the way.

    Your son now owns the House asset, and his making payments to you doesn't impact the value of the house in any way ... it merely reduces the value of your Asset (the loan) and transfers some of that money to your checking account.  Additionally, any interest that he pays would need an INCOME category to reflect that.

    The LENDER LOAN, in Q, can set up the scheduled payment, and the full amortization schedule, for each of your son's payments.

    The parents have set up the lender loan as an asset...which will be paid down as the son repays them.  Thus, the advice I gave them.  The asset isn't theirs because they don't own it...the son does...and that house account isn't in their Quicken.  
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