Do I categorize a construction draw received as income? or something else? I flipped a property and used a hard money lender.

Hi there, @lwyche-ffl-gmail.

I'm here to help you categorize your transactions in QBSE. In that way, you'll be able to know what areas of your self-employed business have the biggest impact.

You just need to identify if the transaction is for personal income or business income. It will be included in your estimated tax if that's for business income. Then, if you want to exclude it, select personal income. Here's how:

1. Go to the Transactions menu.
2. Find a transaction on the list.
3. Select Business if the transaction was for business, or select Personal for personal. If the transaction was both, select Split.
4. Review the category in the Category column. QuickBooks tries to categorize transactions for you.
5. If you need to change the category, select the category link. Select a general type, and choose a more detailed category.
6. When you're done, select Save.

For more information about categorizing transactions, I suggest checking this article: Categorize transactions in QBSE.

To ensure that you'll be able to organize your transactions properly, I'd recommend checking the different categories below that you can use in the system:

• Categories in QuickBooks Self-Employed
• QuickBooks Self-Employed Schedule C Categories breakdown

The Community is always open if you have other questions about categorizing transactions. I'll be around to help. Wishing you a great day ahead!

@lwyche-ffl-gmail 

A construction draw is a liability since you owe it to the lender.  Set up a liability account for the loan, then deposit the draw into your bank account and assign it to the new liability account.  That will put the funds in your bank account and record a corresponding amount as a liability due to your lender.