Acquiring personal items for my sole proprietorship

Hey Paul421,

Thank you for reaching out to the QuickBooks Community, and congratulations on starting this new venture! For this circumstance, it would be best to work with an accountant on the legality of selling a personal item to invest in a business. If you do not have an accountant, we provide a ProAdvisor service where you can connect with experts. Simply enter your zip code and browse through the options on the Find My Accountant website. In most of the profiles, they offer a free consultation so they can give you some excellent advice. 

If you have any other questions, the Community and I can help you further. Just hit that Reply button below! I hope you have a great day! 

@Paul421 

This is a sole proprietorship so, from a tax perspective, there is no difference between you as an individual and the sole proprietorship.  It would be redundant to sell your items to the business since the income and expense cancel each other out.  It's like writing a check to yourself.

You can put them into inventory by assigning the opening balance of the item(s) to an owner's capital equity account.  If you don't have an owner's capital account, set one up.  As far as assigning a value to the items, if you recall what you paid for them, use that.  If not, use the fair market value (FMV) of the items.  Research the items online and keep some records to substantiate the FMV.

Or, you can assign the values to an expense account when you sell the items and not keep an inventory.