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From: Cookiejar5 on 16 Jun 2010 17:56
We are making quarterly estimated income tax payments from our
business checking account. What is the Quicken "account type" for this
payment? I have chosen "other asset" for now. Also what is the proper
"tax line" assignment" for this payment. I have it set as "not tax
related" for now. We cannot deduct our tax payments from our taxes so
I do not think these payments should be an expense.

Alan
From: Bob Wang on 16 Jun 2010 18:44
Alan, I just use the Tax: Fed category.
From: Andrew on 16 Jun 2010 20:28
Cookiejar5 wrote:
> We are making quarterly estimated income tax payments from our
> business checking account. What is the Quicken "account type" for this
> payment? I have chosen "other asset" for now. Also what is the proper
> "tax line" assignment" for this payment. I have it set as "not tax
> related" for now. We cannot deduct our tax payments from our taxes so
> I do not think these payments should be an expense.
>
> Alan

Alan - I think RC White might answer you, but I can't wait to find out one
thing -- tell me you're NOT paying personal quarterly taxes out of a
business checking account and that you're NOT comingling these two types of
accounts within one Quicken file....right??

Quicken as a PERSONAL finance program, IMHO only comes close to doing
business taxes with Schedule C line item assignments (that's why Intuit also
provides Quickbooks for small businesses) , but I am getting a bad feeling
about the question you're asking....unless I'm wrong about the assumptions I
am asking in the first paragraph!

--
-------------------------------------------------------------
Regards -

- Andrew


From: Laura on 16 Jun 2010 20:43
Cookiejar5 wrote:
> We are making quarterly estimated income tax payments from our
> business checking account. What is the Quicken "account type" for this
> payment? I have chosen "other asset" for now. Also what is the proper
> "tax line" assignment" for this payment. I have it set as "not tax
> related" for now. We cannot deduct our tax payments from our taxes so
> I do not think these payments should be an expense.
>
> Alan

What kind of tax entity is your business? Personal tax estimates should
NEVER be paid out of the business account. (Ditto with any personal
expenditure!)

If you must, then treat it as you would any other personal expenditure
paid for by business funds. The type of account depends on what your tax
entity is.
From: jo on 17 Jun 2010 21:29
On Jun 16, 8:28 pm, "Andrew" <and...(a)jkl.com> wrote:
> Cookiejar5 wrote:
> > We are making quarterly estimated income tax payments from our
> > business checking account. What is the Quicken "account type" for this
> > payment? I have chosen "other asset" for now. Also what is the proper
> > "tax line" assignment" for this payment. I have it set as "not tax
> > related" for now. We cannot deduct our tax payments from our taxes so
> > I do not think these payments should be an expense.
>
> > Alan
>
> Alan - I think RC White might answer you, but I can't wait to find out one
> thing -- tell me you're NOT paying personal quarterly taxes out of a
> business checking account and that you're NOT comingling these two types of
> accounts within one Quicken file....right??
>
> Quicken as a PERSONAL finance program, IMHO only comes close to doing
> business taxes with Schedule C line item assignments (that's why Intuit also
> provides Quickbooks for small businesses) , but I am getting a bad feeling
> about the question you're asking....unless I'm wrong about the assumptions I
> am asking in the first paragraph!
>
> --
> -------------------------------------------------------------
> Regards -
>
> - Andrew

I hope RC does chime in here. He has posted periodically on how he
approaches estimated taxes and I just started following his practice
of using an asset account for the payments. The only part I wasn't
sure about was how to make an entry to account for last year's
overpayment being applied in full to this year's estimated. What would
be the source account for this transaction, since no money changes
hands in my accounts? Maybe it's different if you've set up the
protocol some years ago, but if you are just starting this year, I am
drawing a blank. RC.....?
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