I am still pretty new to QBO. I am currently recording our assets and am a little stuck.
We purchased a vehicle cash for $15,000 last March and then traded it in for a different vehicle(with a loan). Trade in value was only $12,000. How do I record the $3,000 loss?
Record a journal entry similar to below. For illustrative purposes, I assumed a new vehicle purchase price of $30K. Change the numbers for the new vehicle asset and loan payable for your specific case. Debits and credits must be equal.
Did you trade in the vehicle in 2023? If so, you will need to contact your CPA/tax accountant and figure out the depreciation that needs to be taken into account. You may not have a loss to record depending on the amount of depreciation taken on your 2022 tax return.
Record a journal entry similar to below. For illustrative purposes, I assumed a new vehicle purchase price of $30K. Change the numbers for the new vehicle asset and loan payable for your specific case. Debits and credits must be equal.
Debit
Credit
New vehicle - Fixed asset (purchase price)
30,000
Loss on disposition of old vehicle
3,000
Old vehicle - to remove from books
15,000
Loan payable
18,000
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