Transfer VS. True expense

Question

Something has changed it appears.

Had an account that only held the true value of an auto.  As example:

"2023 Chevy".  I started the account by transferring the money paid to the dealer and every month take a set depreciation, thus monthly the account balance reflects the value of the car.  All well so far, and I believe in the past.  Today I buy a new car "2024 Chevy".  I transfer the $41,000 value of the "2023" to the "2024" as in essence a trade-in value.  "2023" value goes to zero, and "2024" account goes to $41,000 value.  In addition, I write a check for $4,000 to the dealer for the difference in price and "2024" shows a value of $45,000 as it should and ready again for my monthly depreciation.  Problem came in when I looked at my monthly income/expense graphs which showed a huge expense, ($41,000 from the "23 Chevy" and $4,000 from the checking) for the month.  I winnowed down the graph columns and finally got to the monthly expense that showed up under each of those accounts.  They were transfers of money, not an expense.  I transfer money constantly from a brokerage to my checking and those funds don't show up as expense?

aLfGordon · Answer

Thank you, I fixed it by ticking the actual accounts to be included in the report and deleting the "depreciation" category.

NotACPA · Answer

Exactly WHICH graph are you looking at?  And, have you customized it?  How was it created … but as you've observed, Transfers shouldn't show as Income or Expense.

Also, when you do TOOLS, Account List and click EDIT adjacent to these accounts, is there a "Tax Schedule" button at the bottom of that dialog?  If so, click  on  it … what shows as the Tax Lines for transfers in and out?