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How to Record Wire Transfer Fee for a Fixed Asset?

Hello,

 

I've purchased a piece of equipment (Fixed Asset) and I paid using wire transfer. That wire transfer has a fee associated with it and I was wondering if I record the fee as an expense (Bank Fees) or do I put it as an entry in the Fixed Asset account for the piece of equipment? 

I know that generally al expenses associated with a Fixed Asset are included in the account for that asset but wasn't sure since it's a banking fee.

 

Thank you.

1 Comment
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Community Champion

How to Record Wire Transfer Fee for a Fixed Asset?

As I see it you have the choice of expensing up front maybe $25 or depreciating it over 5-10 years. 

 

This is not tax advice, for that pay your CPA about 4 times the wire fee for their advice prior to when you give them your records at tax time.

 

You CAN add the fee to basis. You could also add, if paid by paper check, the per check cost, cost of envelope as well as any postage.

 

Or you can treat it as an incidental expense incurred in the ordinary course of business. Think of this - would you allocate any of your computer costs or electricity used while putting this deal together to the asset basis?

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