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Vuk
Level 1

Do Vehicles need to have their own Asset account?

Hello!

Usually, I have always a Vehicle Asset account and a separate one for Equipment but my new client has always put any Vehicle purchases (sales) and Equipment purchases into the same "Equipment" asset account. I would like to separate the two since I think it would be a better option for several reasons but they are not sure about making the change. So beside better tracking of their assets, is there another reason why Vehicles and Equipment should have their own account? Is depreciation the same for both or does Equipment depreciate differently than Vehicles? 

Thank you!!

Solved
Best answer January 11, 2020

Best Answers
Rustler
Level 15

Do Vehicles need to have their own Asset account?

Yes equipment depreciates differently, see IRS pub 946

 

Some like lumping fixed assets in one account, but IMO that makes it really hard when you scrap/sell/tradein the asset.  And if you lump accumulated depreciation it gets harder

 

I set up my fixed asset structure something like this, doing it this way on the balance sheet I can just collapse the fixed asset account and see the over all total (parent accounts in QB are summing accounts and you do not post to a parent account)

 

fixed assets

>> vehicles

>> >> Ford F350

>> >> >> cost
>> >> >> accumulated deprec, F350

>> >> Perterbuilt

>> >> >> cost

>> >> accumulated deprec, Peterbuilt

 

>> Tools & Equipment

>> >> >> Lathe

>> >> >> >> cost

>> >> >> >> accumulated deprec Lathe

 

 

View solution in original post

1 Comment 1
Rustler
Level 15

Do Vehicles need to have their own Asset account?

Yes equipment depreciates differently, see IRS pub 946

 

Some like lumping fixed assets in one account, but IMO that makes it really hard when you scrap/sell/tradein the asset.  And if you lump accumulated depreciation it gets harder

 

I set up my fixed asset structure something like this, doing it this way on the balance sheet I can just collapse the fixed asset account and see the over all total (parent accounts in QB are summing accounts and you do not post to a parent account)

 

fixed assets

>> vehicles

>> >> Ford F350

>> >> >> cost
>> >> >> accumulated deprec, F350

>> >> Perterbuilt

>> >> >> cost

>> >> accumulated deprec, Peterbuilt

 

>> Tools & Equipment

>> >> >> Lathe

>> >> >> >> cost

>> >> >> >> accumulated deprec Lathe

 

 

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