"the first part asked to categorize it as income or expense. Not sure which to choose." It is either or as far as sections on the create account page. Skip to lower part select Fixed Asset. Describe but DO NOT enter a beginning balance. Same with the Van Loan liability, create the account. Select Loan and in next screen change the dropdown to Long Term Liability, Now make a journal entry First line debit purchase price to the asset account Lines 2+ sales tax, doc fees, title, etc debit post to asset account. Down payments post credit to asset, they will reverse in the actual checks Lat line credit the Loan face amount At this point everything should balance. Save and go to your checks, make sure each posts to the asset. Interest is only posted in the monthly payment checks - or once a year recap.