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nonyanon
Level 3

Buying artwork that will be on wall in office - Chart of Accounts categorization? Appreciation Asset?

Hi there, how do I categorize in the Chart of Accounts a piece of art for the office that will gain value while in our possession?

 

Which category would I create/use: 

 Other Assets > Other Long Term Assets?

 Other Assets > Appreciation?

 

Thx

ny

1 Comment 1
Ethel_A
QuickBooks Team

Buying artwork that will be on wall in office - Chart of Accounts categorization? Appreciation Asset?

Hello there, @nonyanon.

 

Thank you for reaching out to us with your concern about categorization. Let me share some insights with you about the chart of accounts.

 

When you create a new company file in QuickBooks, you tell us what type of business you have.

 

Everyone gets the same set of standards accounts. QuickBooks adds additional accounts automatically based on your industry. you don't see an account you need, you can always create it manually.

 

Assuming you rent the office, they are expenses, create a sub-account of misc expenses called remodel or something and book them to that.

If you own the office building, there is a slight chance they might be an improvement to the asset, I would still book them to the remodel expense account and remind your tax accountant to take a look at them in case they need to be reclassified

 

You may also learn more about the chart of accounts.

 

Feel free to reach back out to me if I can be of more help with the chart of accounts. I'll make sure to get back to you as soon as I can.

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