Making a Loan to Another Person

Hi, Scotty.

We discussed this just a couple of weeks ago in the thread "friendly loan - how to report" started on 3/28/2012 by ps56k. While that loan was between unrelated parties, the same rules - including the "imputed interest rules" - apply for loans to relatives.

Like other transactions, to record it in Quicken you just "follow the money" and record what actually happened "in real life". Create an asset account for the Loan Receivable. If you write your son-in-law a check, then record it in your checking account register with a charge to the loan account. If you have your bank issue a check directly to him (I don't recommend this route, but it's up to you), then record a transfer from savings to the loan account.

RC

-- R. C. White, CPA San Marcos, TX (Retired. No longer licensed to practice public accounting.) snipped-for-privacy@grandecom.net Microsoft Windows MVP (2002-2010) (Using Quicken 2012 Deluxe R 5 and Windows Live Mail in Win7 x64)

My son-in-law wants to borrow some money from me. I'm thinking I can do a transfer of funds from a savings account, but I'm not too clear on how to go about setting up a loan account that isn't from a lending institution to me.

Has anyone created/recorded such a transaction in Quicken 2012, and if so, how did you do it?

Thanks for the pointer to the previous discussion, and for the recipe on how to do this in Quicken.

Geez..., "imputed interest income" - I get to like the federal government less and less with every passing day!

If you go the Loans screen, you should find a radio button that defaults to "borrow money", but you can "lend...", too.

Your opening transaction for that loan can come from your Savings account.