Categories tell Quicken what each business or rental transaction is for, so your reports and tax summaries show the right totals. This topic explains how to create a business or rental category and how to associate it with a tax schedule.
This feature is only available in Quicken Classic Business & Personal.
Where business and rental categories appear
Business and rental categories appear in the Categories window with the other categories in your list. This section explains how Quicken organizes them.
Quicken groups business categories under two parent categories, Business Income and Business Expenses. Rental income and expenses appear under these same parent categories. For example, Rent Received is a subcategory of Business Income.
In the Categories window, the Type column shows Business Income or Business Expense for categories that you set up for business use.
The default list includes Rent Received and Management Fees, and neither has a tax form assigned. To include them in the Tax Summary report, edit the categories and complete the tax settings described in Assign a tax schedule and tax line. If one transaction covers more than one category, such as rent received and a management fee, you can split the transaction to assign each amount to its own category.
Create a business or rental category
Use these steps to add a category for business income or expenses, including rental income and expenses.
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In Quicken, choose Window menu → Categories.
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Click the plus button at the bottom of the Categories window and select New Category.
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In the General section, enter a Name for the category.
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Optional: In the Subcategory of field, enter the category that this category belongs under, such as Business Income or Business Expenses. Leave the field blank to create a top-level category.
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For Type, select Income or Expense.
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For Usage, select Business.
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Optional: Enter a Description.
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If the category is tax-related, complete the steps in Assign a tax schedule and tax line. Otherwise, go to the next step.
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Click Save.
The new category appears in the Categories window and in the Category field when you enter transactions.
To create a category beneath an existing business category, see Creating new business subcategories.
Assign a tax schedule and tax line
Assigning a tax schedule and tax line connects a category to the correct line on your tax forms. Quicken uses this information to fill in the Tax Summary report.
The New Category window includes a tax section for each type of activity you can report:
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Tax - General Business (Schedule C) for business income and expenses.
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Tax - Rental Property (Schedule E) for rental income and expenses.
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Tax - Farming (Schedule F) for farm income and expenses.
To assign a tax schedule and tax line:
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In the New Category window, scroll down to the tax sections.
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In the section that matches the category, turn on Tax-Related. The Tax Schedule / Form field shows the schedule for that section.
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From the Tax Line list, select the tax line that matches the category. You must select a tax line for Quicken to treat the category as tax-related. The Description field in the tax section explains the tax line you select.
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Click Save.
If you are not sure which schedule or tax line applies, check with your tax advisor.