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michelleh1996
February 27, 2023
Question

dump trailer loan question

  • February 27, 2023
  • 1 reply
  • 0 views

we got a loan for a dump trailer the last week of December.  That money from the bank was deposited into our business checking to pay the trailer place tin full and we are making loan payments thru our bank. 

1. My main question is do we mark that money we received for the loan that was deposited as Income OR as a business loan OR  transfer OR something else?

2. does it matter that the check for the trailer didn't clear until the "next year" essentially- like do we have to wait until next year to count it as a deduction....the check was dated 12/28/22- but cleared our bank on January 3rd?

I marked the trailer purchase transaction as "Other tools and equipment (more than $200)"- is that the correct category?

3. And finally, Going forward, how do we mark the loan payments as? 

1 reply

A
Archie_B
February 27, 2023

Good day, michelleh1996. 

 

I'm here to share some insights and point you on the right track.

 

If the funds you received are part of the estimated tax calculation, you can categorize them as income. However, since we're talking about loans and repayments, you can use other business expenses to temporarily categorize tricky transactions and review everything at the end of the year. 

 

You can also go to this link for the dedicated forum for TurboTax or a tax professional and ask for guidance in categorizing these types of transactions.

 

I've also added this article as a reference in categorizing transactions: Schedule C and expense categories in QuickBooks Self-Employed.

 

Let me know if you still have questions or other concerns. I'd be glad to assist. Have a great day!

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