I am doing an owner carry back from the sale of my business. How would I record the loan details ?

Adventurer

Since switching to Quicken from QB, I have done well at converting all my accounts, however, upon selling our business, we have done an owner carry back. The funds are transferred monthly into my account from the title company. How would I go about entering the details for the loan ? I do get a report from the title company of the principal and interest paid, and I have the current balance info. I thought about doing the principal owed as A/R, but I do not feel this is the correct way of going about this. Example. sold business for $ 100k, down payment $ 25k, monthly payments received $ 1000, of which lets say $ 400 is current principal and balance is interest. Since I sold in '22, I don't think I would enter the sale price, nor the down payment. I think I would just enter the current loan balance ( but I do not know where or how to do this ). Then when payments come in monthly, I would record the principal paid towards the loan amount and the interest towards an interest income account.

Jim_Harman

That sounds like what Quicken would call a Lender Loan. You have transferred the asset to the title company and they are paying you over time.

Adventurer

Not really, I am the one who is the "bank". The title company just facilitates the funds from the buyer and then pays them to me monthly.