Liability account transactions not showing on Tax Report

Randy 415
Randy 415 Windows Beta Beta
edited April 1 in Reports (Windows)
I have a similar question to another user back in 2019. Never got resolved.

I collected 2K from a tenant as a security deposit. When they left, I paid 1K to repair the property using my CC and returned 1K to them.

In the CC transaction, I entered Rental Income:Rents Received as the category and also included a transfer to the Security Deposit [Liability] account. Similarly, I recorded transfer to the Security Deposit [Liability] account  for the 1K payment to the tenant.

Now - when I run the default Tax Schedule report, the repair and income transactions don't show up.

I also created a custom transaction report, and the transactions show up correctly in the Rents Received category. Likewise, if I change the category to Repairs, they show up as well. 

Any ideas why this happens?

Comments

  • Quicken Jared
    Quicken Jared Moderator mod
    Randy 415 said:
    I have a similar question to another user back in 2019. Never got resolved.

    I collected 2K from a tenant as a security deposit. When they left, I paid 1K to repair the property using my CC and returned 1K to them.

    In the CC transaction, I entered Rental Income:Rents Received as the category and also included a transfer to the Security Deposit [Liability] account. Similarly, I recorded transfer to the Security Deposit [Liability] account  for the 1K payment to the tenant.

    Now - when I run the default Tax Schedule report, the repair and income transactions don't show up.

    I also created a custom transaction report, and the transactions show up correctly in the Rents Received category. Likewise, if I change the category to Repairs, they show up as well. 

    Any ideas why this happens?
    Hello @Randy 415,                

    I am sorry that this question seems to be unanswered, and for any confusion this may have caused. Thank you for reaching out to the Quicken Community for additional discussion and support.

    First, save a backup by going to File > Copy or Backup File in the upper menu at the top of the screen. When you scroll to the bottom of the report, do you see any messages that say 'Resolve Unspecified Rental Property and Business Expense Transactions so your transactions are complete and you don't miss any potential deductions?' If so, what happens when you click on the blue links contained therein?

    I look forward to your response, and hope to continue working with you on this issue. 

    Thank you,

    Quicken Jared 
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    edited March 1
    Randy 415 said:
    I have a similar question to another user back in 2019. Never got resolved.

    I collected 2K from a tenant as a security deposit. When they left, I paid 1K to repair the property using my CC and returned 1K to them.

    In the CC transaction, I entered Rental Income:Rents Received as the category and also included a transfer to the Security Deposit [Liability] account. Similarly, I recorded transfer to the Security Deposit [Liability] account  for the 1K payment to the tenant.

    Now - when I run the default Tax Schedule report, the repair and income transactions don't show up.

    I also created a custom transaction report, and the transactions show up correctly in the Rents Received category. Likewise, if I change the category to Repairs, they show up as well. 

    Any ideas why this happens?
    This is an off the top response.  Take it for what its worth --- 

    I'd see taking in the deposit as a deposit to your checking account with the category recorded as a transfer from the I-O-Renters liabilities account.  At that point, your net worth is unchanged.  While your asset value has increased by the $2k, your liability has also increased by $2K meaning no overall change,  That seems right.  The $2K you have accepted is not 'yours', it is theirs and you are holding it for them.  

    If they move out with no damages, you reverse the process - You write a check payable to the renters, but the category reflects a transfer with the liability account.  Your bank account goes down by that amount but so does the liability account.

    When you only return part of their security deposit that same step holds.  You write them a $1K check that also reduces your liability account by the $1K.  Now what about the $1k you have kept for damages?

    You can address the $1k of their security deposit that you kept in two transactions or one split transaction.  You CC account is not involved. 
    • Deposit $1K in your checking account recorded as an appropriate income category.  You cited Rental income.  Fine.  That temporarily increases your Checking account balance.
    • Transfer that $1K from your checking account to your I-O-Renters liability account.  That reduces you checking balance back to where it belongs, and reduces your liability account that your potentially owe renters.  
    • You can combine those two into one transaction with a net amount of $0 if you choose to (I would). 
    • These two or the one combined will not show up in your real world checking account, but so what.  You know what is going on there.  
    I would expect all these transactions to properly flow to the applicable tax reports, especially since they substantially occur only in your regular checking account.

    Hope this helps
This discussion has been closed.