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Income from Leased Machinery/Equipment

Income from Leased Machinery/Equipment

 

How do you set up income from leased machinery/equipment?  I assume you need a fixed asset account for Leased or Rented Equipment, an income account, and an item for the invoice.  I also assume the equipment would be depreciated.  There will be a buyout at the end for the customer.

 

Just want to check if this is correct and what entries to make.

 

Thank you!

Best answer 3 weeks ago

Accepted Solutions
Super Explorer **

Re: Income from Leased Machinery/Equipment

Thanks Rustler!  QuickBooks actually called me and answered my question.  I was right that it has to be recorded as a fixed asset when purchased and depreciated annually, and a monthly invoice goes to the lessee and applied to lease income.

2 Comments
Established Community Backer ***

Re: Income from Leased Machinery/Equipment

Starting this year the rules for accounting for a capital lease have changed, I suggest you get with a tax accountant to insure the 2019 rules are followed

Super Explorer **

Re: Income from Leased Machinery/Equipment

Thanks Rustler!  QuickBooks actually called me and answered my question.  I was right that it has to be recorded as a fixed asset when purchased and depreciated annually, and a monthly invoice goes to the lessee and applied to lease income.