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How to close out "forgiven" PPP loan in Quicken.

Jim Williams

I received a PPP loan and set it up as a loan in Quicken showing the category as my checking account where the money was deposted. I was informed today by my bank that my loan has been forgiven. So now the question is how do I "close" out the loan in Quicken?

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Accepted answers

Chris_QPW

Sounds like all you need is a balance adjustment transaction.
Just enter the transaction as a withdraw for the remaining amount where the category is [Loan Account Name] (same as the account you are in).

All comments

Chris_QPW

Jim Williams

Thanks, that seems to have worked. It just took me a while to find out how to get to the register from the loan details screen to make the entry.

maryannbarnsley

How do I make balance adjustment transaction?

Chris_QPW

@maryannbarnsley just enter a transaction where the category is the account name you are in, in square brackets, like this: [Account Name]

Jim Williams

The way I did it is to open the register of whatever account, or in this case the loan account. You can get to the loan register by clicking on the "Payment Details" button near the top left of the loan screen. It's just to the right of the "Loan Details" button which is opened by default. Then just enter a transaction to zero out the amount. I enter "Balance Adjustment" and the total amount of the adjustment in the "Decrease" field and since the loan is forgiven I enter the loan account in the category field. I also noted in the memo field that entry was made because the loan was forgiven. The memo entry doesn's due anything, just a reminder of why the enter was made. You could make the same kind of entry in the Payee field. You'll get a pop-up warning that you are saving a transaction to same account, but in this case that's fine as you don't want that amount to show up anywhere else. If, for example the forgiven loan amount was deemed to be taxable, you would have entered something like "Other Income" in the category field. In that way, the adjusted amount would will be reported on your income for the year.

Chris_QPW

Sorry I keep forgetting that this is for the use case where you have the loan setup for downloading. When a loan account is setup for downloading there isn't any account register to enter the balance adjustment transaction into. So the first step is to get it to a manual entry loan account the first step would be to go into the Account Details -> Online Services and change it to a manual entry account if that is the case.

UKR

Here's an example from my Test Quicken data file:

The loan account is named "New lender loan" (because that's the Quicken function I was testing some time ago).
Look at the transaction highlighted in blue. This Balance Adjustment transaction will set the account to 0.00
The Category is the same as the account register name, [New lender loan]