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pallc
Level 3

How to handle computer equipment that was gifted to my business? (QBO)

Hello,

 

I have a computer desktop and two monitors which were gifted to me by my friend, so I can use them in my business (at home remote administrative work). The items are valued at:

  • Desktop $600
  • Monitor #1: $150
  • Monitor #2: $150

 

I am unsure if I even need to depreciate this because they were given to me as a gift and I am unsure if I would still categorize this as a fixed asset since I did not pay money for it. So my questions are:

  • What account do I categorize this to? They were brand new when gifted to me
  • Do I need to depreciate this asset if I did not pay money for it?
  • Do I need to record the value s $0, or as the original cost for each item?
Solved
Best answer June 18, 2021

Best Answers
LeizylM
QuickBooks Team

How to handle computer equipment that was gifted to my business? (QBO)

Hello, pallc. 

 

Glad to have you here on the Community page. Allow me to share insight on how to handle computer equipment that was gifted to you. 

 

We can walk you through categorizing transactions. However, we're unable to advise which category to choose since each business has a unique way of handling transactions. It would be best to consult an accountant about this matter. 


Regarding the IRS Pub. 551 Basis Assets on how to handle tangible personal property( computer equipment). To figure the basis of property you receive as a gift, you must know its adjusted basis (defined earlier) to the donor just before it was given to you, its FMV at the time it was given to you, and any gift tax paid on it.  I'd still recommend consulting an account for proper guidance. 

 

You can check this link for more details: Basis of Assets.

 

Also, here's a link for your reference on how to depreciate assets in QBO: Depreciate assets.

 

Keep me posted if you have other questions. I'm always here to help. Have a great day!

View solution in original post

1 Comment 1
LeizylM
QuickBooks Team

How to handle computer equipment that was gifted to my business? (QBO)

Hello, pallc. 

 

Glad to have you here on the Community page. Allow me to share insight on how to handle computer equipment that was gifted to you. 

 

We can walk you through categorizing transactions. However, we're unable to advise which category to choose since each business has a unique way of handling transactions. It would be best to consult an accountant about this matter. 


Regarding the IRS Pub. 551 Basis Assets on how to handle tangible personal property( computer equipment). To figure the basis of property you receive as a gift, you must know its adjusted basis (defined earlier) to the donor just before it was given to you, its FMV at the time it was given to you, and any gift tax paid on it.  I'd still recommend consulting an account for proper guidance. 

 

You can check this link for more details: Basis of Assets.

 

Also, here's a link for your reference on how to depreciate assets in QBO: Depreciate assets.

 

Keep me posted if you have other questions. I'm always here to help. Have a great day!

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