Sell an asset on an owned loan

David Bell

I sold shares in a privately held company. The shares are held in their separate Quicken account. It is a contract sale, where the buyer is repaying me with monthly payments. I retained some shares that remain in the original account. What would be the correct way to effect this sale where the proceeds flow into the new owned loan account?

Tom Young

You might want to step over to the TurboTax community and ask the question as to whether this sale would qualify for installment sales treatment, assuming the pay back period orchestrates over the end of the year.

Assuming the stock in held in Quicken in an Investment Account and ignoring the "installment sales" aspect, then here's one approach:

1. Create an offline Asset Account in Quicken titled something like Note Receivable.  Tell Quicken that the date to start tracking this asset is the date of the sale and leave the balance at $0.
2. In the Investment Account sell the stock at the sales date at the agreed upon total price.
3. Transfer the "cash" in the Investment Account, using the sales date, into the new Note Receivable Account, zeroing out the Investment Account's cash.
4. Convert the amount in the Note Receivable Account into a loan owed to you by clicking the gearwheel and selecting "Convert to a lending loan..."

Then as you receive payments you deposit the cash in your Checking Account with a split entry between interest (if any) and principal that's transferred to the Note Receivable Account.

David Bell

Thanks, Tom. That is helpful.