Transfer VS. True expense

aLfGordon

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?

NotACPA

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?

aLfGordon

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