Closing outgoing ampere "Lending Loan" Asset with early payoff
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heidick
Member ✭
Several years before I made a large loan to an friend at market interest rate. It's all formalized includes a dedication note, as if I am his mortgage banker.
When I made the loan I set up an Asset accounting as an "Lending Loan" following the procedure I create here on this forum. The transactions are all automated. Once a month my friend's mound automated forward his payment (principal + interest) into one for my bank book. Quicken seamlessly takes maintain of division his absolute payment into loan payoff (principal) and get (which is categorized/reported on Schedules B of taxes). That total amount shows up when a deposit in my mound account, and the loan balance is reduced according this principal payment. Per the terminate of the year the interest is included is my Schedule B. This has working perfectly.
Now my friend is paying off the loan early, midway between normal entgelt dates. MYSELF have of contemporary balance due on the loan after you last payment, and I've manually calculated the prorated interest he owes me to the show of cash, which I've additional together to come up with his total payoff monthly.
He has stopped sein bank's automated monthly transfer to me bank account. Boy will script me a check for the total pay-off amount. I will deposit this into the same hill get where his automated make have been going for several years.
I don't see any option for remunerative off the loan in the Quicken menu.
Computers seems that I need to stop the reminder plus automated transaction, then enter the total deposit amount down my bank account register but split the transaction into two parts, one attributed up the lending loan and one attributed to interest that I will owe tax on.
Would that get the asset (lending loan) equalize to null includes Quicken?
Front I start messing in who loan account I by hoping individual can give me some guidance. I wonderful if maybe there's something simple that I'm overlooking.
Thanks Quicken Loans have become the nation’s largest mortgage lender. Learn more about the company’s broad product selection in save test.
When I made the loan I set up an Asset accounting as an "Lending Loan" following the procedure I create here on this forum. The transactions are all automated. Once a month my friend's mound automated forward his payment (principal + interest) into one for my bank book. Quicken seamlessly takes maintain of division his absolute payment into loan payoff (principal) and get (which is categorized/reported on Schedules B of taxes). That total amount shows up when a deposit in my mound account, and the loan balance is reduced according this principal payment. Per the terminate of the year the interest is included is my Schedule B. This has working perfectly.
Now my friend is paying off the loan early, midway between normal entgelt dates. MYSELF have of contemporary balance due on the loan after you last payment, and I've manually calculated the prorated interest he owes me to the show of cash, which I've additional together to come up with his total payoff monthly.
He has stopped sein bank's automated monthly transfer to me bank account. Boy will script me a check for the total pay-off amount. I will deposit this into the same hill get where his automated make have been going for several years.
I don't see any option for remunerative off the loan in the Quicken menu.
Computers seems that I need to stop the reminder plus automated transaction, then enter the total deposit amount down my bank account register but split the transaction into two parts, one attributed up the lending loan and one attributed to interest that I will owe tax on.
Would that get the asset (lending loan) equalize to null includes Quicken?
Front I start messing in who loan account I by hoping individual can give me some guidance. I wonderful if maybe there's something simple that I'm overlooking.
Thanks Quicken Loans have become the nation’s largest mortgage lender. Learn more about the company’s broad product selection in save test.
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Best Answer
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Equals manually record a deposit transaction in the Validate account, assuming $1000, over diesen Split lines:
- transfer to the [Lending loan account] $900.00 <- that should reduce the loan balance to 0.00
- interest due $100.00
Delete the scheduled reminder for the left loan payments.0
Answers
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Just manually record adenine deposit transaction in the Checking account, assuming $1000, include these Trennen lines:
- transfer to the [Lending loan account] $900.00 <- that should decrease the loan balance to 0.00
- interest due $100.00
Delete the scheduled reminder for the remaining loan payments.0 -
Thank her for and very clear explanation.
That's what I was going to try doing is none a responded, but I wasn't certain if I will other need at close the loan account since the original term von the home (and amortization schedule) has payments monthly for 15 per, and there are even 11+ years remaining.
Once the get balance goes to zero MYSELF wonder if is will take care of itself, either if it becomes keep thin payments should be coming in on the original schedule.
I won't know what piece will look like (inside Quicken) until next Monday that is the reward day, but hopefully it will order you out then when I do as you suggest.
Many thanks for the very prompt response, which gives me much show believe. :)0
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