How To Record The Sale Of A Fixed Asset In QuickBooks Online | QBO Tutorial | Home Bookkeeper

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[@shawna9786]

I have recorded the purchase of a lot and a building loan. Now I need to record the sale of the finished house. QBO plus. I appreciate your help!

[@thehomebookkeeper]

That is pretty advanced bookkeeping and involving the projects feature. I would recommend getting a bookkeeper who is familiar with real estate and construction industries. I would be happy to help.

[@shawna9786]

@@thehomebookkeeper I do feel better that you used the word "Advanced".

[@thehomebookkeeper]

@@shawna9786 haha It is but if you watch my video on the projects feature it takes some of the sting out of it. I used to work with a land developer (bought land and build housing neighborhoods) and that was when I had to do everything by spread sheet and journal entry lol we could also do a 1:1 coaching session also. I could walk you through the process and answer any questions. Let me know how if that would help.

[@shawna9786]

@@thehomebookkeeper I just sent you an email. Thank you!

[@sandykaur1099]

I didn’t purchase the vehicle in company but I sold it in company so how can I make the bill of sale and match the transaction??

[@brianstiles652]

Simple and straight to the point! You're my go to from now on!

[@thehomebookkeeper]

Thank you! So glad to hear it

[@VickyLashenko]

Hi Emily! This is so helpful! I'm loving all your videos! I'm doing bookkeeping for my husband and you have been such a wonderful resource for us! Thank you so much! How do you calculate depreciation on the vehicle? I have such a complicated vehicle sale to figure out and I cannot find any answers online! We had a loan on the vehicle, we paid it off in full, then we sold the vehicle for more - and I have NO idea how to enter all that in. Maybe you can answer this in another video? Thank you very much for your consistent videos! Your hustle and dedication is so inspiring as a fellow mama!

[@thehomebookkeeper]

Thank you so much 😊 I’m so glad I can help. Since this is such a personalized situation maybe a coaching session would be best. I offer 1:1 private QBO coaching sessions to guide your through accounting situations just like this. Visit edjconsultinggroup.com and under the Home Bookkeeper page is my coaching form.

[@bonniecarpenter1571]

Does it make a difference if the asset is already fully depreciated?

[@alanadrake8496]

This was very helpful and *almost* what I'm looking for. My situation may be too complicated for a KZbin video, though. We bought a vehicle in 2020 for $17,500. Took Section 179 on it that year. I never set it up in QB. This January, we sold it for $20,000. So rather than depreciation, we have a gain. I know my tax preparer will help at the end of the year, but how would I set up the sale in QB?

[@thehomebookkeeper]

If you would like to set up a coaching session to review the transaction process together here the link to my coaching form. www.edjconsultinggroup.com/homebookkeeper

[@user-we8kw2ul4g]

can you show how to record a loss for defective items we replaced?

[@thehomebookkeeper]

If they were defective were they replaced or were you sent a replacement?

[@user-zp4lu6ku1n]

This video was so straightforward thank you! I have an asset that was fully depreciated and then sold. As part of the JE I debited the Acc Dep the full value and credited the asset its full value. I then put the entire value of the sale as a 'Gain on sale of asset' and did not record any depreciation as the acc. dep was already met in full. Does that sound like the right approach?

[@thehomebookkeeper]

From what I can gather without reviewing the work that sounds about right. You should be able to match the deposit transaction to your journal if done correctly. You will also have a second chance to review your work when you reconcile

[@user-zp4lu6ku1n]

Got it. Thank you! Yep the deposit transaction matched no issue. I think what got me nervous was the Gain aspect of the JE. The asset was fully depreciated and even though the item sold for less than the original sale price - I am still a little cloudy on what the gain means and if the client has to pay taxes on the gain /income. ..@@thehomebookkeeper

[@evergreenvillage7170]

Thanks so much for this post. It was very helpful as I'm new to QuickBooks online. I was able to record the sale of the asset, however at the very end you say, "the next step is to match the bank feed deposit to the deposit recorded on QuickBooks" and I don't know what that means. Could you please elaborate? Thanks again!

[@thehomebookkeeper]

I’m so glad you found my content helpful 😊 I do have a bank deposit tutorial on my channel but I’m sure you received some kind of payment (check, cash, bank wire) for the asset you sold. Unless you use Quickbooks Payments and took a credit card you’ll want to create a bank deposit for when you deposit the funds into your bank account. Once the funds clear the bank account and you see the transaction in the bank feed you can match the transaction to the bank deposit you create in QBO.

[@ErikaDunn]

Hi thank you for the video- simple & straight forward. What about if there is a loan for this asset. Does that need to be dealt with/noted in the journal entry as well?

[@thehomebookkeeper]

If there is a loan on it you would want to categorize it as a liability not an asset

[@EmilyPink-bh6zi]

This is the purchase of an asset not the sale of it. How do you show the sale of an asset to show a profit or loss on your books.

[@thehomebookkeeper]

I’m not sure if you watched the video but maybe try viewing again in it’s entirety. This is how you record the sale. Nothing in this video covers the set up after a asset purchase

[@user-tg1tt6mc6n]

Emily - good can you do a video that shows how to record an asset that was purchased, for example, an established online store. The store was purchased from a provider who was also managing the store and subsequently a couple of years later the provider went bankrupt. So I need to remove the asset online store purchased and record the loss. thanks

[@thehomebookkeeper]

There are too many variables for this to be a simple online tutorial. If you would like to schedule a coaching session I can assist you with recording this accurately

[@ckuruc2233]

I own a used auto sales dealership, nothing big, but just got set up w quickbooks and just wondering how I record my individual sales. Let it be noted that I've taken out a loan to purchase the cars, so for each sale I must also figure in what I owe for the car. How would I go about doing all this?

[@thehomebookkeeper]

This is a bit more complicated than typical bookkeeping. This would require a lot of manual accounting and journal entries. I can show you how I would do all this in a coaching season. You can find the sign up form on my website www.edjconsultinggroup.com/homebookkeeper

[@anabelduran8880]

Hello, hi how can I record a trade on of a fixed asset without a loan to a new car loan ?

[@thehomebookkeeper]

There’s a few different factors at play here. If you would like to register for a private coaching session please do so here www.edjconsultinggroup.com/homebookkeeper

[@user-ml9nb6to6b]

If you are debiting the checking account in the JE, why would you also create a bank deposit? You would be recording the proceeds twice.

[@thehomebookkeeper]

you would select the journal in the bank deposit and match with the transaction in in the bank feed when the deposit clears. Matching will eliminate any duplicates. That's why its so important to match vs add when possible

[@tesslambert1509]

Thank you very helpful. Can you help me... I don't want the loss to show in chart of account as depreciation, but rather debit the bank account (our capital) the amount we lost on the sale??? how do I do this please

[@thehomebookkeeper]

Are you saying you purchased a fixed asset for more than you sold it for? If so that would be depreciation which may be tax deductible

[@volantdronesolutions2866]

This is very helpful. If the check from the sale was deposited to a linked account do you just allot the linked transaction to match the JE?

[@thehomebookkeeper]

Yes always match to anything you enter into the system. Matching will avoid duplicates or errors

[@volantdronesolutions2866]

@@thehomebookkeeper I might need some help. Is it possible to set up a quick coaching session this week with or next?

[@taylormarsh1604]

Hi! What if the asset is old and not recorded on the books yet? In the midst of finding an accountant to set up all assets/depreciation to get the books in shape but currently just trying to track/categorize bank transactions and invoices in QB.... So i have a deposit in my bank feed for the sale of an old company vehicle (unknown purchase price etc.) What is the category for this deposit? income? Or in the interim set up a "Ask accountant" income ? Or how would you handle. Thanks!

[@thehomebookkeeper]

So if you are looking for someone to assist you I can help get your set up if you'd like. Just send me an email at [e-mail]. I would leave the transaction in the bank feed and let the outsource professional handle it. You don't want to "add" something in from the bank feed that can be "matched" to a manual task like a created expense, bill or journal. This will cause the transaction to become duplicated in the system

[@srn3216]

Hi Emily, thanks for the video, I'm trying to figure it out the journal entry for a sale of a 2008 truck for $30,000 which cost $83,000 back then, The asset was not recorded in quickbooks so how do i record this sale?

[@thehomebookkeeper]

You would need to enter the asset with the original dates and purchase data. Then follow through with the journal entry. Remember, depending on when you purchased the asset, like if you purchased it in 2021, then you may have to make an amendment

[@karenhoffman3634]

Hi Emily, I have a sale of a fixed asset, a building that I am trying to make sure is recorded correct for 2022. I have no experience in accounting or QBO and just learn from tutorials. The bank deposit was already recorded back in May when I reconciled my monthly bank statement but I didn't create a journal entry to show the sale, depreciation and original purchase price. How can I easily fix this? Thanks for any help you can provide.

[@thehomebookkeeper]

Thanks for watching. For something like this I would recommend setting up a 1:1 Coaching session so I can walk you through the process. That way you can ensure it’s done correctly from start to finish.

[@ryander24millersson74]

Hi, how about if i sold my asset with VAT? How should I record the VAT amount in to the hournal entry. I sold a commercial vehicle with VAT less than I bought it for. Can you help me to explain this?

[@thehomebookkeeper]

This is more advanced situational accounting than what can be shared on a KZbin video. If you would like to book a private QuickBooks training session please email [e-mail]

[@stephaniegibson8043]

Hi Emily, are the steps in this tutorial the same for selling real estate? My accountant said to me that sales proceeds should be under a gains/loss account in P&L. Does this naturally create a gain/loss account?

[@thehomebookkeeper]

This is a question I can't really answer without a closer look at the business and it is also a personal preference. Accounting is hard sometimes because even though there are IRS guidelines we must follow every accountant wants to see things in the way they prefer. If you are flipping homes with a mortgage attached I would say put them into liabilities since you have a mortgage payment, interest, and loan fees to record, but if you are doing cash investments then I would enter them in as assets. I always recommend that any "R" business gets a bookkeeper. Real Estate, Retail and Restaurants lol they need bookkeepers the most since they are the most challenging and require the most attention to detail.

[@shawna9786]

@@thehomebookkeeper I would love to see a walk through on entering a closing statement. I don't care what you call the accounts (such as asset vs gain/loss, etc), just a walk through on correctly recording all of the debit/credit associated with selling the house.

[@bradleydavidgood]

I'm confused about the last part having to do with the bank deposit and matching it...not sure what you mean by that. When you categorize the bank deposit, do you just choose the asset name as the category? Is that what you mean by matching?

[@bradleydavidgood]

You said don't be afraid to comment, thank you for that, here it goes. I'm wondering why you need to do all of these things. I know that you understand all of the reasons but those like me who are not an accountant do not understand why I'm debiting a checking account when I've received money. I would think that would be a credit. And why do I have to record the depreciation? So that the asset zeros out? And why do I need to credit the asset for the original purchase price? Wouldn't that already have been done when the check for the purchase was categorized to the asset? Thanks!

[@thehomebookkeeper]

You’re welcome! I want this to be a space where people feel free to ask questions because these are all important topics to understand as business owners who are maybe not quite ready to outsource. You want to record the depreciation because depreciation is tax deductible. Recording it properly will allow it to show up on reporting. Keeping accurate reporting is essential to having accurate insights to your businesses finances and you’ll need reports for tax time or if you ever need business capital or get audited. When you create a bank deposit in quickbooks online that simply records it in the system. You’ll want to head over to the transactions feed where your bank accounts loans and credit cards are connected and match the bank deposit you created in quickbooks to the cleared bank transaction. Matching it to the transaction allows it to have the proper workflow / paper trail. It’s important to match transactions also because if you simply edit the category and add the transaction it may become duplicated throwing your financial off balance

[@bradleydavidgood]

@@thehomebookkeeper OK that helps a little, and I'm still not getting it completely. I need to study up some more on this stuff or hire a QB accountant to help me while watching my screen while I'm in QBO. Because I'm determined to learn this and do it myself. I don't have many transactions a year and want to be in charge of my own accounting. I have a minor in finance (from many moons ago), and I never really figured it out then, and didn't want to, kind of hated it and blocked it. That's why I'm determined to break thru that block now, since I have a reason to understand it for my business, and I want to break down the fear/uncertainty/mental block. I've already come far with QB and feel great about how much I've broken thru so far, and want to go all the way. Thanks for the help.

[@thehomebookkeeper]

That sounds great! If your business is small and intends to stay that way and you can manage doing your own accounting while avoiding burnout I definitely recommend learning as much as possible to ensure you are doing it correctly. If you want to sign up for a coaching session I have 1:1 QBO coaching spots available

[@kierstencarr8317]

Hello, I have a fixed asset that was traded in for a new fixed asset. Since it was a trade in, there is no profit into any account because the difference was deducted from the new loan. How do I reflect this in QB online. Do I need to add the new asset in first and then choose that account as "the bank account to reflect the sale"? I'm a little new at this and looking for some help on entering it all in correctly.

[@thehomebookkeeper]

Thanks for your comment. This is a great question! I will make a video tutorial on this process soon. Make sure you’re subscribed with the bell on so you don’t miss it

[@kierstencarr8317]

@@thehomebookkeeper Thanks, can you ping me just in case- want to get it updated asap. thanks for the help

[@thehomebookkeeper]

@@kierstencarr8317 if you are looking for step by step service I do offer coaching calls

[@kierstencarr8317]

@@thehomebookkeeper sent you an email

[@dactransportinc279]

Hi Emily, how does it work if I sold the asset for more than I purchased? In which account do I record the profit since it wouldn't be depreciation? Thanks

[@thehomebookkeeper]

You would record the gain under a non operating income account. I can make a video for this if that would help

[@dactransportinc279]

@@thehomebookkeeper Thank you for your reply, that helps me. no, a video is not necessary.

[@thehomebookkeeper]

You’re very welcome. Glad I could help

[@MM-eh7ps]

What if it is a sale of an old Trailer to an employee? The original owner paid cash for it like 10 years ago and they never put it in the Fixed Assets. The employee is making monthly payments for the trailer to the company.

[@thehomebookkeeper]

That depends. If the trailer was purchased 6 months before the business founding and not written off the first tax year then it’s not a business asset. So in that example nothing would need to be done even if sold to a employee. I would record the payments received as owner equity that way it won’t effect the profit and loss

[@MM-eh7ps]

@@thehomebookkeeper Got it!! Thank you so much!!

[@a.stewart5046]

I have a question for you. I’m trying to take over the books as we lost our bookkeeper to cancer a couple years ago. We have a piece of equipment that she did a journal entry in originally as we were buying it on time. We just sold that piece of equipment and made a small amount of money. So I want to make sure I’m doing my journal entry right. It kind of prefilled on its own after I did the initial debits, so I’m hoping I am doing this right. I have cognitive issues with my MS and bookkeeping gets me confused…

[@thehomebookkeeper]

If you need a new bookkeeper I’m happy to assist but you can also always check the journal entry in the account reconciliation window. You can make sure it is crediting or debiting correctly there 🤓 it’s a little hack I use sometimes

[@a.stewart5046]

@@thehomebookkeeper we sold this piece of equipment for more money than we paid for it. So I was crediting our savings bank, (the sale amt.) then I debited depreciation expense the difference of the purchase price and the sale price and then I also debited the original purchase amount of the piece of equipment that we sold to the loan payable it came from. But then that leaves a $6000 gain that I’m not sure where I am supposed to put? I’m guessing it has to go on the debit side?

[@thehomebookkeeper]

So not knowing the business you can create a misc income account or put the it in uncategorized income since you have a gain. Every accountant is different so they may want to recategorize it when they review the account to file just be sure to enter in a description

[@a.stewart5046]

@@thehomebookkeeper Hi Emily, thank you so much! You are so kind and your videos are easy to understand for us “non-bookkeepers”

[@thehomebookkeeper]

Thank you so much that brings me so much joy 😁 I am happy to help and be a resource

[@MichaelByers-ch3xq]

We sold a company truck do I follow the above video to record it in QuickBooks Online? we purchased it for $14,840 and sold it for $18,000?

[@thehomebookkeeper]

Yes. If you watched this video you will notice this example is based off of a vehicle. The only difference would be the recording of the difference. Instead of depreciation it would be a gain/income