Nonprofit - building construction

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Hi,

I'm a volunteer for a local nonprofit, in charge of our QuickBooks Desktop for nonprofits 2019. We are adding on to one of the buildings on our site. Since the cost is $40k, I assume it should be added as a fixed asset. Do I create a new item in the fixed asset list and tie that to the bill we received from the construction company? Do I need to worry about depreciation even though we are a nonprofit? Any help is appreciated!

QuickBooks Desktop

RustlerAnswer

Level 15

During the building phase post all expenses to an asset account, not a fixed asset account

When the building is ready for use, then use a journal entry to move that total cost to a fixed asset account you create.

debit fixed asset, credit the building asset account for the balance in the building asset account

Depreciation does not start until the building is in use, and yes you should post annual depreciation