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Experienced Member

Fixed Assets

Could not find this specific question/answer in the topics on Assets.  So, my balance sheet has fixed assets that have been fully depreciated and have been retired years ago on it.  We did not sell them or trade them in, just disposed of them.   How do I remove them from my balance sheet in QB desktop 2017?

4 Comments
Established Community Backer ***

Re: Fixed Assets

If you still own them they would remain on the balance sheet. They effectively have a zero value even if you retain the acquisition value as the asset value and post all accumulated depreciation in a single account (I do).

 

Disposed of is different. How disposed? Put out with trash? Put them on a Sales Receipt at zero sales price. Taken to recycle for $100/ton? Sell them for salvage cost and recover the depreciation taken as ordinary income (or just claim the cash as income, still selling them at zero)

 

Final step is making them "inactive"

Experienced Member

Re: Fixed Assets

Yes, put to the trash.  I have made them inactive but they still show up on the BS.

 

Experienced Member

Re: Fixed Assets

Any further insight on how I can remove "trashed" fixed assets from QB so they do not show up on my balance sheet even after making them "inactive"?

Established Community Backer ***

Re: Fixed Assets


@burnsjm1988 wrote:

Yes, put to the trash.  I have made them inactive but they still show up on the BS.

 


You have to make an entry to get them off the balance sheet, set the accounts to active

create an income account called gain/loss on assets

journal entries (in the memo block of each, enter something like "asset disposed of in trash"

debit gain/loss for the value in the accumulated depreciation account, credit gain/loss

debit gain/loss, credit the fixed asset account for the value in that account

then you can make the zero balance fixed asset and accumulated depreciation accounts inactive

gain/loss should show a zero balance if cost was fully depreciated