I purchased equipment that was recorded as an expense in 2023 (under the de minimis safe harbor amount). In 2024, I sold equipment (at a loss) how to do I record this?

You can set up a depreciation account and create a journal entry to accurately record the equipment's lost value, erin81. I’m here to guide you through the process step by step.

If you haven't set up a depreciation account in your Chart of Accounts, you can follow the steps below. QuickBooks Online doesn't automatically depreciate fixed assets. Instead, you need to manually track depreciation using journal entries.

Here's how:

1. Go to the Transactions menu⚙ and select Chart of accounts.
2. Click New.
3. Add a name for your depreciation account in the Account name field. 
4. Select Other Expenses in the▼ dropdown from the Account type field.
5. Select Depreciation in the ▼ dropdown from the Detail type field.
6. Note: You can put a description in the Description field to add information about this account. 
7. Click Save.

Then, you can create a journal entry to record the lost value. Before proceeding, I recommend consulting your accountant for the debit and credit. They can provide valuable insights into the best methods for recording the sold equipment, ensuring your financial records remain accurate and compliant.

1. Click the + New icon, then select Journal entry.
2. Fill out the fields to create your journal entry. Make sure your debits equal your credits when you’re done.
3. Click Save or Save & Close.

I'll also share some helpful links that will guide you in running financial reports, giving you a quick overview of your business's performance, and reconciling your accounts to ensure they align with your bank and credit card statements:

• Run a report in QuickBooks Online
• Reconcile an account in QuickBooks Online

Feel free to reach out if you have any concerns about recording your sales or if you need further assistance with QuickBooks. I'm here and ready to help.

@erin81 

If you expensed the full cost of the equipment in 2023, you can't take a loss because you already fully expensed it.  A loss is when you sell it for less than your book value and a gain is when you sell it for more than book value.  Because your book value is $0, 100% of the selling price in 2024 is a gain.  

@JoesemM 

The equipment was fully expensed at the time of purchase, so there's no depreciation to take.  Be aware that your post is essentially improper tax advice.