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step by step instruction to add leased vehicles into chart of accounts

step by step instructions to add leased vehicles, with buy-out option at end of lease, into chart of accounts. 

3 Comments
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Re: step by step instruction to add leased vehicles into chart of accounts

If not already in your COA Lists>COA>Add New Type = Expense Name = Vehicle Lease That is it. You did not indicate you were outside the US (like Canada) where asset value must be on the books even though no money to purchase asset takes place for 3 years or longer. You may be subject to an inclusion amount on your tax return but that is never entered in your books - only on tax return If at endvofvlease you buy the vehicle that is when you stroke a check or sign a loan and add the asset which then can be depreciated to record annual expenses if you do not use standard mileage deduction
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Re: step by step instruction to add leased vehicles into chart of accounts

We're in South Carolina.  We got 3 new Leased Trucks & 1 we purchased.  Don't I have to do Journal Entries for each so that there isn't a negative balance on the books when we make payments?  We did pay an up-front Lease Payment for the 3  Leased trucks - so it's already in the negative. 

The purchased truck will be set up as a loan payment with both short & long term accounts, so that we can transfer funds from the long-term account to the short-term account to cover the monthly payments until it's paid off.

Thank you,

Gale

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Re: step by step instruction to add leased vehicles into chart of accounts

We're in South Carolina.  We Leased 3 new trucks & purchased 1.

Wouldn't we have to set up our COA like a  loan payment so that we don't go into the negative

when we make Lease payments each month? 

We already made advance Lease payments at delivery of the vehicles.

Thank you,

Gale

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