Inflow to Budget Account from Tracking

Typically each month I have a set amount that transfers from my Checking (Budget) to my Brokerage Account (Tracking) which uses the Category of "Taxable Investment".  This works and makes the investment contribution show up as an expense and negative $$ on my budget. 

This month I ran into a situation where I needed to cash out some of those investments and move funds to my checking.  I'm not sure what the "correct" way to log this transaction on my Checking(Budget) account is.

1.  Category = Taxable Investment which results in a positive amount in this category that could be reallocated

2. Category = Inflow TBB which adds the amount to the top line and can then be reallocated out

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  • This should be TBB. It's new income from the Budget side of view. It's not a reimbursement of an erroneous contribution to Taxable investment.

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  • I think the answer depends on what you want to see in your reports. 

    Setting it to TBB means the income came in from one source, out as an expense and then back in from another source, so you'll end up with total numbers indicating $x inflows for the year which could be higher than the sum of everything you earned. It does however reflect reality in that you sold some investments and that money was returned to your budget for new allocation

    Alternatively you can aim for a more visually appealing report and send it back to the category it originally left from. 

    It probably also is influenced by the timing, how long since you spent it originally for example.

    I'm having a similar question with my mortgage. I just sold a house but we also have already signed a contract to settle on a new place in may. I have a massive inflow to TBB from my off budget house value category and am also seeing massive outflows back to the same category as i pay deposits and ultimately settle on it soon. I've played with both ways of doing it and decided to go with the TBB option rather than the sale of the house reimbursing my history of mortgage payments. 

    Ultimately, up to you.

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