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qbteachmt
Level 15

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You first describe that you put the Deposit into Asset; but someone paying you is Liability to you.

 

You will not be Changing the amount you invested. You will be disposing of a Partial Asset, and the basis is split per the portion kept and portion disposed of, as if that is two assets. That won't change your basis in what you keep, because you kept the part you kept.

 

The Deposit has nothing to do with your basis or asset, either. It has to do with Potential Sale and the Banking part of it.

 

You can go to Edit menu > Preferences, to Reports & Graphs, the Company Preferences tab, to use the Classify Cash button. But first, it helps to clarify what you thought this is, isn't what you will be doing. Liability is part of the Financing operations because you have Funds that are not yours to keep, or will be used against the Gross Sale. Not changing your own asset.

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