New Car / Old car

Just got a new car, with trade in of old. Dont want this to show up as any type of income when i zero out old car. Have old car setup as a property asset and a property liability because of the loan. If i lower the asset account to match the amount left on the loan and do a transfer, would that do it?? Need to also setup new loan account for new car ==should i also setup a asset account for it??
Anybody done this?? Whats the best way??
Reply to
bill
Just got a new car, with trade in of old. Dont want this to show up as any type of income when i zero out old car. Have old car setup as a property asset and a property liability because of the loan. If i lower the asset account to match the amount left on the loan and do a transfer, would that do it?? Need to also setup new loan account for new car ==should i also setup a asset account for it??
Anybody done this?? Whats the best way??
Reply to
bill
Personally, I would use the same account. You can zero out the old balance with a transaction which posts to the same account (you'll get a warning, but say Yes). Or do a balance adjustment. You won't see any income or expense with this entry.
Reply to
Fred Smith
I do something similar to Fred but a little more complicated. Take it for what it's worth. As Fred did, I post all the transactions to the same account and click Yes on the warning.
I set up 2 asset accounts for each car. The first is called 99 Car Name with an initial Increase entry for the total amount paid, say $20k. I also set up a 99 Car Name Deprec account. Each Jan 1 I calculate the remaining car value and depreciation from Edmunds or Kelly and enter a Decrease amount in Deprec as the prior year depreciation. On my net worth statement I have the original amount minus the accumulated depreciation leaving the "net" value of the car.
I traded the car in this year and made a 2nd entry in the Car Name account as a decrease for the trade-in, $2k. Net cost $18k for 8 years. I also made a corresponding Decrease entry in Deprec, in this scenario $1,800 to "balance" so the sum of the two accounts is now zero. In this case I traded the car for $200 more than it's calculated "value."
You could potentially put the yearly depreciation charge in the original asset account but I like to see the values separate on my net worth reports. To be even more OCD, I make a 0 amount entry in the Car Name asset account each Jan 1 called mileage and put the current odometer reading as a memo item. I have a spreadsheet that goes back 12 years with cost per mile numbers for each of our many cars. Not extremely useful but fascinating trivia.
This time though it showed me the cost per mile increasing as I started to incur some repair costs over the past 2 years. Made the decision to trade a year earlier than normal as I ignored this warning in the past and got burned on 2 cars.
Hope this helps.
sb
Reply to
slb

You only need to have ONE account per asset, i.e. ONE account per vehicle. Start off with cost price, as you did in your first account, and simply insert depreciation, on an annual basis in that ONE asset account. That way, your net worth is always accurate with only ONE account needed per depreciable asset.
Reply to
sharx35
I made that very statement (one account would work) in the 4th paragraph of my response. I use 2 accounts because of personal reporting preferences. There is no single correct answer for a personal tracking system.
I also do it this way because when I owned my company the corporate accounting system tracked assets with corresponding accumulated depreciation accounts and an offseting expense account to track yearly business depreciation tax writeoffs.
sb
Start off with cost price, as
basis in that ONE asset
needed per depreciable asset.
Reply to
slb

response. I use 2
for a personal tracking
system tracked assets
account to track yearly
Obviously, it fit your specific needs. For most, though, one account would suffice. I use the KISS principle, Keep it Simple.......
Start off with cost price,
basis in that ONE asset
needed per depreciable
Reply to
sharx35
Just because a solution doesn't meet your needs doesn't, by default, make it stupid. Bill asked a question, one of the key purposes of this forum. Fred offered a solution. I offered another solution. You didn't like mine, so in the process of reiterating Fred's solution you bashed a completely legitimate approach. I didn't force anyone to use my TWO account solution, I simply offered it as an alternative.
Take a look at the balance sheets and P&L statements of any publicly held (and most privately held) companies. They all account for assets and depreciation this way. It makes the transactions "cleaner" and conforms to GAAP. It's also more effort to maintain TWO accounts. Since Quicken is not a true double entry accounting system, it will allow you to charge transactions back to the same account.
I didn't realize you were speaking for "most" when you pontificated the ONE account solution. I only saw you speaking for yourself.
my response. I use 2
for a personal tracking
accounting system tracked assets
account to track yearly
suffice. I use the KISS
Start off with cost price,
basis in that ONE asset
needed per depreciable
Reply to
slb

stupid. Bill asked a
another solution. You didn't
legitimate approach. I
most privately held)
transactions "cleaner"
Quicken is not a true double
account solution. I only
There is NO requirement or necessity to worry about GAAP when using Quicken. Power users would be using Excell or Simply Accounting or any other of a number of higher powered accounting software available. For PERSONAL accounting, ONE account, per asset, works find and dandy. Unless one has OCD, of course.
my response. I use 2
answer for a personal tracking
accounting system tracked assets
account to track yearly
suffice. I use the KISS
Start off with cost
annual basis in that ONE asset
needed per depreciable
amount minus
"balance" so the
Reply to
sharx35
Then do yourself a favor - create a single asset account. Keep It Really Simple Stupid. Dump all your asset transactions in the ONE account. That way you don't have to trouble yourself with such complicated balancing and reporting concepts I'm a power user and have used Quicken since the early DOS days. I ELECT to conform to GAAP to a certain extent. THAT'S WHAT WORKS FOR ME. Obviously, it doesn't work for you. That's the great thing about Quicken, it allows you to balance your checkbook or all your accounts. YOU DECIDE.
End of discussion. It's been mildly interesting.
stupid. Bill asked a
another solution. You didn't
completely legitimate approach. I
(and most privately held)
the transactions "cleaner"
Quicken is not a true double
account solution. I only
Power users would be using
accounting software available. For
has OCD, of course.
of my response. I use 2
answer for a personal tracking
accounting system tracked assets
account to track yearly
suffice. I use the KISS
for what it's
and click Yes
vehicle. Start off with cost
annual basis in that ONE asset
account needed per depreciable
up a 99 Car
amount minus
"balance" so the
To be even
Jan 1 called
spreadsheet
many cars. Not
year earlier
Reply to
slb

Simple Stupid. Dump all your
with such complicated
DOS days. I ELECT to
work for you. That's the
accounts. YOU DECIDE.
Time to up your Prozac prescription.
it stupid. Bill asked a
another solution. You
completely legitimate approach.
(and most privately held)
the transactions
Quicken is not a true double
account solution. I only
Power users would be
accounting software available.
has OCD, of course.
of my response. I use 2
answer for a personal
accounting system tracked
account to track yearly
suffice. I use the KISS
for what it's
and click Yes
vehicle. Start off with cost
annual basis in that ONE
account needed per
set up a 99 Car
original amount minus
"balance" so the
for $200 more
reports. To be even
Jan 1 called
spreadsheet
many cars. Not
started to incur
year earlier
balance with
expense with this
Reply to
sharx35
slb wrote in news: snipped-for-privacy@nospam.com:
I also use the two account method, so that the cost basis is in one account and the accumulated depreciation is in a second. Unfortunately Quicken won't allow you to do a balance sheet where you can have it create a "asset net of depreciation" subtotal. I also have a third account for real property which I use to track the difference from accounting basis and current market value. I can turn this account on or off in reports to get either a book value report or more of a "mark to market" report. The transactions in this account are internal transfers so they work like the "_unrealized gains" in quicken investment accounts.
scott s. .
Reply to
scott s.
stupid. Bill asked a question,
another solution. You didn't like
legitimate approach. I didn't
most privately held)
transactions "cleaner" and
Quicken is not a true double entry
account solution. I only saw you
You haven't noticed yet - sharx35 apparently feels compelled to pop in here regularly to remind everyone how stupid they are, and how superior he is. Seems like some sort of complex. You'll see him remind us with nauseating regularity how he's using an OLD version of Quicken and he's happy to do so, we're all suckers because we buy NEW versions, his way of doing ANYTHING is far better than any other method, you're a fool to not follow his advice. You know the type...
Reply to
Tracy McKibben

stupid. Bill asked a
another solution. You didn't
completely legitimate approach. I
(and most privately held)
the transactions "cleaner"
Quicken is not a true double
account solution. I only
Well, I DO buy new versions of AntiVirus software and AntiSpyware software Each and Everyyear.
Reply to
sharx35
Tracy,
I noticed that with his/her first response. I mostly lurk but every once in a while a question pops up where I feel I can offer an alternative. I don't try to force it down anyone's throat as there's always more than one way to accomplish almost any task. Hell, I've even changed some of the things I do because John or RC offer a reasoned approach.
Don't agree, that's fine. Do it constructively. Offer another idea. Just don't regurgitate a previous idea while trashing someone else. And please, at least be more creative with the insults.
It's amazing how the supposed anonymity of the Internet brings out the dark side of people's personalities, things they'd never say in face-to-face conversations. There's a small group here who seem to relish being argumentative just for the "fun" of being obnoxious. I've killfiled them as their rants aren't worth the time to cycle through. Thanks though to all the thoughtful, respectful participants, however. I've been a Quicken user for years and I still learn new things every week due to their participation and willingness to share ideas. That's the real reason for this forum.
sb
stupid. Bill asked a question,
another solution. You didn't like
completely legitimate approach. I didn't
(and most privately held)
the transactions "cleaner" and
Quicken is not a true double entry
account solution. I only saw you > > speaking for yourself. > > > > You haven't noticed yet - sharx35 apparently feels compelled to pop in > here regularly to remind everyone how stupid they are, and how > superior he is. Seems like some sort of complex. You'll see him > remind us with nauseating regularity how he's using an OLD version of > Quicken and he's happy to do so, we're all suckers because we buy NEW > versions, his way of doing ANYTHING is far better than any other > method, you're a fool to not follow his advice. You know the type...
Reply to
slb

I've always wondered about the need for antivirus software. Seems to be a marketing scare to me. I have never had a virus on my home PC and I've been using PC's for over 20 years. My email is scanned by my ISP, I am behind a firewall and my wireless lan is secured.
I do find value in Spyware.
Reply to
Oilcan
"Oilcan" wrote in news:FzmKi.29584$ snipped-for-privacy@newssvr13.news.prodigy.net:
I tend to agree. I had a laptop that got that virus that invaded via the MS windows RPC open port, but that was easy to diagnose and fix. I used to get about 25% spam emails and of these 1-5 or so a day carried a virus payload, but the emails were obvious and I never used any anti-virus to get rid of them. My current ISP seems to get rid of all those. I've never gotten an email-delivered virus from them. I don't use IRC or IM, so maybe that makes a difference. I d/l plenty of exe files, and have never gotten a virus that way, though maybe I use more caution then some folks. I built a new system and put on the freeware AVG (gets rid of the MS windows nag icon). I'm not sure I will pay for AV software again.
scott s. .
Reply to
scott s.

I'm thinking seriously of going over to the freeware AVG once my current subscription to Trendmicro AV software runs out. Trendmicro AV is a real hog on resources even though I'm running 2 gigs of memory on a 2.2 gig 3500+ AMD processor and Win XP.
Reply to
sharx35
"sharx35" wrote in news:lfEKi.91500$Pd4.8432@edtnps82:
I've used McAfee for a few years, mainly due to good price for a multi-computer Av/firewall bundle. But in normal operations it requires like 6 processes (3 I think install as services) and it is difficult to turn it all off. The included firewall is OK but it has been dumbed down over the years. You used to be able to create explicit rules, but not any more.
scott s. .
Reply to
scott s.

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