Company Vehicle Bookkeeping Question

Company Vehicle

Company Vehicle

How do you record in Quickbooks the following scenario:

Sold company vehicle for 17,500:

All accummulated depreciation is used. Should be a gain of 17,500.

How do you record it?

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Jun 08, 2018
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starstarstarstarstar 		Recording Company Vehicle Expense
by: Stephanie

Thank you for your company vehicle bookkeeping question.

The scenario above would be recorded in QuickBooks as follows:

CREDIT Company Vehicle ORIGINAL VALUE OF ASSET
DEBIT Accumulated Depreciation by TOTAL ACCUM. DEPR. USED
(should be the same as the original value of asset)

DEBIT Cash Account $17,500
CREDIT Gain on Sale of Asset $17,500 (Other Income Account)
Nov 21, 2010
Rating
starstarstarstarstar 		Record Vehicle With Accumulated
by: Anonymous

How do you record the following as an adjusting entry?

Sold one vehicle for $15000 on July 1. The vehicle original cost was $20000 and its accumulated was $7000 at the time of the sale.

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Entry For Purchase Of a New Vehicle

by Noreen
(New York)

I purchased a new business vehicle and need to know the proper entry to make to properly record it as an asset.
Thank you!

Hi Noreen,

Thank you for your contribution.

A new vehicle would be recorded as an asset as follows:

CREDIT the Cash Account for amount of cash paid
CREDIT the Loan Account for amount financed
DEBIT the Vehicle Asset Account for the total

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Jan 02, 2011
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starstarstarstarstar 		Vehicle Used For Both Business And Personal
by: Anonymous

If the vehicle is used 100% for business I would DEBIT the Vehicle Asset Account for the total.

However, if I use the vehicle 15% for personal use and 85% business use, would my debit for the vehicle asset be the same cost as if it was 100% business use or would I only post 85% of the total cost as the asset amount?

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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?

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May 25, 2018
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starstarstarstarstar 		Long Haul Trucking Form
by: Stephanie

Thank you for your question regarding where you can find a long haul trucking form template for download to save time when doing your income taxes.

You can find many different helpful bookkeeping and income tax forms to help you at the end of the year for doing your taxes here on the Basic Bookkeeping Forms page

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Loss on Vehicle

Vehicles

Vehicles

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

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Aug 24, 2023
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starstarstarstarstar 		Sale of Company Vehicle
by: Stephanie

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 more 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 you 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

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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
corporation and it was traded for painting at personal home.

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Aug 24, 2023
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starstarstarstarstar 		S-Corp Barter Transaction
by: BB

The scenario you've described involves a barter transaction between a Sub-S corporation (which owns the van) and a service provider (painting at a personal home). In a barter situation, both parties should recognize the fair market value of the goods or services exchanged.

Here's how you can book the entry:

Debit (Increase) Expense:

Record the fair market value of the painting service as an expense in the Sub-S corporation's books. Since the painting is at a personal home, this may be categorized differently based on the exact nature of the transaction and the relationship between the corporation and the individual.

Credit (Decrease) Asset:
Reduce the asset value of the van by crediting the Vehicle or Fixed Asset account with the fair market value of the van.

Example Journal Entry:
Debit: Painting Expense (or suitable category) $X
Credit: Vehicle/Fixed Asset $X

Note:
It is essential to ensure that the fair market value of both the van and the painting services are accurately determined and documented. This situation could also have tax implications, depending on the jurisdiction and the relationship between the Sub-S corporation and the personal home's owner.

If the painting services at the personal home do not have a direct business purpose, this could create additional complexities. You may wish to consult with a tax professional or CPA who understands the specific laws and regulations governing Sub-S corporations in your jurisdiction to ensure compliance with all relevant tax and accounting rules.
Aug 24, 2023
Rating
starstarstarstarstar 		S-Corp Barter Transaction
by: BB

The scenario you've described involves a barter transaction between a Sub-S corporation (which owns the van) and a service provider (painting at a personal home). In a barter situation, both parties should recognize the fair market value of the goods or services exchanged.

Here's how you can book the entry:

Debit (Increase) Expense:

Record the fair market value of the painting service as an expense in the Sub-S corporation's books. Since the painting is at a personal home, this may be categorized differently based on the exact nature of the transaction and the relationship between the corporation and the individual.

Credit (Decrease) Asset:
Reduce the asset value of the van by crediting the Vehicle or Fixed Asset account with the fair market value of the van.

Example Journal Entry:
Debit: Painting Expense (or suitable category) $X
Credit: Vehicle/Fixed Asset $X

Note:
It is essential to ensure that the fair market value of both the van and the painting services are accurately determined and documented. This situation could also have tax implications, depending on the jurisdiction and the relationship between the Sub-S corporation and the personal home's owner.

If the painting services at the personal home do not have a direct business purpose, this could create additional complexities. You may wish to consult with a tax professional or CPA who understands the specific laws and regulations governing Sub-S corporations in your jurisdiction to ensure compliance with all relevant tax and accounting rules.

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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?

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Aug 24, 2023
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starstarstarstarstar 		General Partnership Vehicle Purchase
by: BB

When a general partnership buys a vehicle for business use, the vehicle itself should be recorded as a fixed asset on the balance sheet, not as an expense. The payment for the vehicle would be recorded as a reduction in cash (or an increase in liability if financed) and an increase in the fixed asset.

Here's how you would typically record the vehicle purchase:

Debit (Increase) Fixed Asset:
Record the cost of the vehicle to the "Vehicle" or "Fixed Asset" account.

Credit (Decrease) Cash or Credit (Increase) Liability:

If paid in cash, credit the cash account.
If financed, credit a liability account, such as "Vehicle Loan."

Example Journal Entry (if paid in cash):
Debit: Vehicle/Fixed Asset $X
Credit: Cash $X

Example Journal Entry (if financed):
Debit: Vehicle/Fixed Asset $X
Credit: Vehicle Loan Liability $X

Subsequent monthly payments on a loan would be divided between reducing the liability (principal) and recording interest expense. If the vehicle is leased, the treatment might differ.

The ongoing costs of operating the vehicle, such as fuel, maintenance, insurance, etc., would typically be recorded as expenses.

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Vehicle Trade Ins

by Sylvia
(Seattle, WA)

Vehicle Trade Ins

Vehicle Trade Ins

How Do I record vehicle trade ins?

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Aug 24, 2023
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starstarstarstarstar 		Vehicle Trade In Bookkeeping Entry
by: BB

Recording a vehicle trade-in requires accounting for both the disposal of the old vehicle and the acquisition of the new one. Here's a general outline on how you might record a vehicle trade-in:

Determine the Book Value of the Old Vehicle:

Original cost of the old vehicle minus accumulated depreciation.
Record the Disposal of the Old Vehicle:

Debit (Decrease) Accumulated Depreciation for the old vehicle.

Credit (Decrease) the Fixed Asset account for the old vehicle's original cost.

If the trade-in value is different from the book value, debit or credit a Gain or Loss on Disposal account accordingly.

Record the Acquisition of the New Vehicle:

Debit (Increase) the Fixed Asset account for the new vehicle's total cost.

Credit (Decrease) the Fixed Asset account for the trade-in value of the old vehicle (if not already done in step 2).

Credit (Decrease) Cash or Credit (Increase) Liability for any additional amount paid or financed.

Example Journal Entries:

Disposal of Old Vehicle:
Debit: Accumulated Depreciation (Old Vehicle) $X
Credit: Fixed Asset (Old Vehicle) $X
Debit/Credit: Gain/Loss on Disposal $Y (if applicable)

Acquisition of New Vehicle:
Debit: Fixed Asset (New Vehicle) $Z
Credit: Fixed Asset (Old Vehicle) for trade-in value $W (if not already done)
Credit: Cash or Liability $V (difference between $Z and $W)

The exact entries can vary depending on the specific circumstances, such as whether there's a loan involved, sales tax considerations, etc.

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