Posting Draws from Taxable Business Income to Personal Account
Hello,
I am new to Quicken. I am using Quicken Classic Business and Personal for my business (taxable income) and transfers/draws from my husband's business. How should I categorize "income" I receive from his business, which is taxable, but he manages it separately? I don't think I should count it as taxable because it wouldn't be taxed twice. Help appreciated.
Answers
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Do you have his business in a separate data file? How does he report his business for taxes? Does he file a Schedule C in your Joint personal tax return? Or file a separate Business tax return like a LLC or S corp etc?
I'm staying on Quicken 2013 Premier for Windows.
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His business is not in a Quicken file. He maintains the records on his own. He files a Schedule C in our Joint personal tax return. We also file a Schedule C for my little business. I have Quicken Classic Business and Personal so that I can track my business and household budgets. Thank you for your help.
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If his business was in your Quicken file it would just be entered as a Transfer which doesn’t show up as income or withdrawal. If you enter it in your checking account or wherever you should categorize it to some category that isn’t income or not taxable income. Probably need to set up a category for it like Received from Business or Business Draws or Business Transfers or just Other Income.
I'm staying on Quicken 2013 Premier for Windows.
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If I understand you, if create a new category, it won't be treated as income, correct? Thank you for your time, volvogirl.
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Well it probably will show up as income but it won’t be taxable income. Categories are either income or an expense. And I don’t think you would want to set it up as an Asset Account.
I'm staying on Quicken 2013 Premier for Windows.
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Thank you. I'll try it. So appreciate you sharing your time and expertise.
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