New User with Simple Questions

If you spend enough time reading posts by other users in this newsgroup (which I suggest is a VERY good thing to do: see the Google archives), you will realize that Qucken Help can not provide conclusive help with your question. And if you spend a bit more time thinking about it, you should be pleased that the Quicken Help did not make any meaningful attempt to answer your question. Your question is *personal*. (Even if you get answers from multiple sources that agree). Categorization is a significantly personal concept.

I will leave it to others to provide those conclusive "answers" to your question.

It's only an expense if you don't expect to be repaid. If that's the case create *any* expense category you like (e.g., "Yet another 'loan' to my stupid brother-in-law") and forget about it.

If you expect, or at least want to be, repaid then it's not an expense, it's an asset. You've traded one asset (cash) for another asset (a loan to be repaid.) So, create an asset account (e.g., "Loan to Brother-in-law") and record it there.

Tom Young

How about setting up an account to lend money to that person then the category would be []

How about removing the "misc" category? :-)

You're welcome!

Take an introductory accounting course at a local high school; I'm certain there are evening courses available in your area.

You are sure to learn about the differences between income & expenses and assets & liabilities.

This basic information will be invaluable in helping you decide between trying to record a loan as an expense or placing it onto your books as say a "receivable" (asset).

One way to do what you want it to create an Asset type account and call it "Loan to XYZ" (where XYZ is the name of the person you loaned the money to.

Then, instead of recording the outflow of the money from your "Chequing" account to some mysterious category, you could instead record it as a TRANSFER to the "Loan to XYZ" account. Basic accounting here...

Please consider my suggestion to take a grade 10 level accounting course to get a basic grounding in accounting; you will be glad you did. The results: good data, less time wasted, confidence in your abilities, etc.

Thank you for your suggestion, but I already know the difference between liabilities and assets and even debits and credits. Taking an accounting course seems like overkill just to get an answer to a simple question.

Could've fooled me.

Obviously not a challenge.

Back up, Scooter. Your original message ("a check that I wrote as a personal loan that I made to someone? I assume that it is an expense.... ") makes it quite clear that you don't understand the difference between buying an asset and incuring an expense. Quicken is a bookkeeping program, and watching people use it who don't know bookkeeping is painful.

Doug

Thanks, Doug. That's really helpful.