Company Vehicle Bookkeeping Question

Long Haul Trucking

I'm trying to find the appropriate forms to down load and save time at the end of the year to get my taxes done. Is there such a template?

Loss on Vehicle

Vehicles

I sold a company vehicle.
It had one year of depreciation.
How do I record the loss on the transaction?

When you sale a company vehicle which had depreciation, you figure gain or loss on a sale by comparing the amount you realize with the adjusted basis of the property.

GAIN: If the amount you realize from a sale or trade is moe than the adjusted basis of the property you transfer, the difference is a gain.

LOSS: If the adjusted basis of the property you transfer is more than the amount you realize, the difference is a loss.

ADJUSTED BASIS: The adjusted basis of property is your original cost or other original basis property adjusted (increased or decreased) for certain items. (Such as depreciation).

AMOUNT REALIZED: The amount you realize from a sale or trade of property is everything you receive for the property minus your expenses of sale (such as redemption fees, sales commissions, sales charges, or exit fees). Amount realized includes the money you receive plus the fair market value of any property or services your receive.

FAIR MAKET VALUE: Fair market value is the price which the property would change hands between a buyer and a seller, neither being forced to buy or sell and both having reasonable knowledge of all the relevant facts.

You will typically report the sale of business property on IRS Form 4797

Trading Off An Old Van For Painting Work

by KJB
(Buena Vista, CO)

How do you book this entry? the van is in a Sub-S
corp and it was traded for painting at personal home.

Hello KJB,

As long as the Van was fully depreciated, you can just take the Van out of service with no sale value since no cash was exchanged and the service obtained was personal. You would accomplish this as follows:

DEBIT Accumulated Depreciation
CREDIT Van

Vehicle Payment

by Tv
(California)

If your business is a general partnership and it is buying a vehicle, what do you record the vehicle payment as? A vehicle expense or something else?

When the partnership purchases the vehicle, you would record the purchase with a debit to the vehicle asset account and a credit to the bank account if paid in cash.

Then when you make monthly payments for the vehicle you will debit the vehicle expense account or vehicle lease account and credit the bank account.

If the vehicle was purchased with a loan, you would record the purchase with a debit to the vehicle asset account and a credit to the vehicle loan account.

Then when you make monthly payments for the vehicle you will debit the vehicle loan account and interest expense account and credit the bank account.

Vehicle Trade Ins

by Sylvia
(Seattle, WA)

Vehicle Trade Ins

How Do I record vehicle trade ins?