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Aaronc5150
Level 1

Business equipment reimbursement

Hello.  We recently purchased some equipment as part of a job that we are working on with a contractor, and the contractor cut us a check to reimburse us for the expense.  How should we categorize it in QB online in order to not be taxed on it as income? Thank you!

3 Comments 3
Rainflurry
Level 13

Business equipment reimbursement

@Aaronc5150 

 

It won't be taxable income if the purchase of the equipment was recorded as an expense.  They will offset, leaving $0 net (taxable) income. 

Aaronc5150
Level 1

Business equipment reimbursement

Thank you! How should I categorize the income to offset it?

Rainflurry
Level 13

Business equipment reimbursement

@Aaronc5150 

 

Totally up to you, but it makes sense to use the same income account that the rest of the job is posting to.  

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