How to forgive a debt in Quicken?

Hello,
My father has loaned me some money on various occasions over the last year or so for different things and I have setup a debt account that shows up under the "Property & Debt" heading. Most of it was through use of his credit card, so when I used it, I entered the transaction into this debt account. Sometimes he transferred me money through e-transfer, and that was recorded as a transfer in my checking account to the debt account.
As a birthday present, he has forgiven the debt. How do I go about clearing the debt without screwing up the various transfers and category entries? I have attached a picture of what the register looks like at present.
Any help is greatly appreciated. Thanks!
Regards,
Andrew S.
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Best Answer

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited April 2020 Accepted Answer
    Make one single entry writing off the entire balance.  If this was a "real" loan you'd write it off against some income category like "Loan Forgiveness", and recognize it in your income tax return.  This was really a gift in the form of informal loan forgiveness so you might write it off against a "Gifts Received" category, "Misc Income" or anything else that you want to call it.  You can also write it off using the Account name itself [Owed to Dad] and the balance in the Account would zero out without showing up in any Category on any sort of Spending Report, or anywhere else.

Answers

  • Tom Young
    Tom Young SuperUser ✭✭✭✭✭
    edited April 2020 Accepted Answer
    Make one single entry writing off the entire balance.  If this was a "real" loan you'd write it off against some income category like "Loan Forgiveness", and recognize it in your income tax return.  This was really a gift in the form of informal loan forgiveness so you might write it off against a "Gifts Received" category, "Misc Income" or anything else that you want to call it.  You can also write it off using the Account name itself [Owed to Dad] and the balance in the Account would zero out without showing up in any Category on any sort of Spending Report, or anywhere else.