New work vehicle

Your screen shot does not show the Fixed Asset Summary. That is under Reports. You have shown a portion of the Summary’s balance sheet—and for a date in the future, at that.

Nevertheless, in your screen shot, 31,681.29 is the sum of purchase prices of your fixed assets. -22388.82 is the total you have entered for depreciation. It shows as a negative because it is included under Assets as a contra account. The difference of 9,292.47 is book value of all your fixed assets.

Without seeing your Fixed Asset Summary, it is impossible to know the book value of the car. But, based on what you have written so far, let’s assume that is your only asset and you sell it for 20,000.00. Because you are selling it for more than its book value, there will be income—a gain on disposal—of 10,707.53. If you sold it for less than book value or gave it away, you would have a loss on disposal. If you sold it for exactly book value, there would be neither gain nor loss.

That is all starting to make sense now. Are there any consequences for just giving it to, lets say, my wife? Or would it be better to sell it to her for the book figure?

That is beyond the scope of this forum. Consult your tax advisor.

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Will do. Thank you.

Hi Tony/Tut,

I have read over the guides to dispose of the fixed asset/work vehicle and followed along. However, Where do I account for the amount the vehicle was sold for? Under Income?? (other)?

It will be automatically posted to Fixed income-loss on disposal as a contra amount. You just allocate the receipt to the asset’s subaccount.

@Tut is correct on the standard accounting treatment. For tax purposes, you need to ask your tax agents if they adopted small business pooling to claim depreciation and if so you would deduct the sale proceeds from the asset pool balance.

Yes Tony, the vehicle was in the small business pooling claim (depreciated over 5 years). How do I deduct the amount the vehicle was sold for from the asset pool balance? (I gather I would need to deduct that amount before disposing of it because as soon as I did it transferred the remaining amount to Fixed income-loss on disposal as an expense).

You allocate the sale proceeds to the asset balance.

Great. I have managed to get those things sorted. As a follow along, I purchased a “new” vehicle for work and plan to write it off as an immediate tax deduction (under Australia’s immediate asset write scheme). I also had a number of other expenses associated with the vehicle. All of the purchases were from my personal bank account. How do I allocate those purchases in Manager?

Enter an expense claim. If you are required to consider the item as a fixed asset, even though it is immediately depreciated, post the expense claim to the fixed asset. If under the immediate write off scheme, you can consider the purchase price purely as a current expense, then post the expense claim to the appropriate expense account.