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Level 1

Section 179 QBO Entry of "Depreciation" and Book Value for Fixed Asset (with Partial Personal Use)

Hello,

 

I have a camera that was purchased for my LLC for $4,000.  It is being used 75% for business use and 25% personal.  I'd like to record the asset's correct book value and depreciation. I'll be 179 depreciating the asset's full business use value this year.

 

I am trying to figure out what accounts to debit and credit for these transactions on Quickbooks Online. 

 

I know the entries if these was 100% business use.  The part that is confusing me is the personal %.  If below are the 100% business use entries, how do they change to account for the $1,000 personal percentage of use? 

 

If 100% business.

purchase:

debit  - $4,000 computer fixed asset

credit -  $4,000 checking account

depreciation:

debit -$4,000 depreciation expense

credit - $4,000 accum depreciation

 

If 75% business use and 25% personal use, then how is that accounted for in Quickbooks Online?

 

Thanks so much,

 

Aaron

2 Comments
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Level 15

Section 179 QBO Entry of "Depreciation" and Book Value for Fixed Asset (with Partial Personal Use)

Assuming you are taxed as a sole proprietor or a partnership ...

when you enter the purchase

line one, the fixed asset account, full amount

line two, owner/partner equity investment, the personal amount as a negative number

save

Highlighted
Level 1

Section 179 QBO Entry of "Depreciation" and Book Value for Fixed Asset (with Partial Personal Use)

Rustler, thank you so much for the prompt response! I was really amazed by your response time!

 

You are correct that I am taxed as a sole proprietor/"single-member LLC."

 

Your information definitely helps put me on the right track except that there is one more caveat I forgot to mention:

 

  • This asset purchase was made with a B&H (Synchrony) 12-month 0% Financing Credit Card.
  • I have that 0% financing credit card set to where it will charge the first 9 payments to my business checking (that is linked to my Quickbooks Online) which will of course come through the Banking section of my Quickbooks Online for me to "Categorize" and account for those payments.

Given that information, how could I factor those first nine 0% payments into the other "line-item" suggestions you previously provided me with? And based on your answer to that question, how would I properly "Categorize" those payments that will be showing up monthly for 9 months so that the numbers stay accurate within this new fixed asset account I need to create?

 

(Also, as a very right-brained artist I reach "Aha" moments much quicker when my brain can process data entry in an at least somewhat visual way or "recipe" type way. I don't want to ask too much of you, so no problem if you can't oblige this in your response, but it would be AMAZING if you could please reply in a format that looks something like this to help me digest what I need to be doing within Quickbooks exactly (realizing my example is probably pretty inaccurate currently):

 

CHART OF ACCOUNTS

  • Create New Account With Following Details:
    • Account Type = Fixed Assets
    • Detail Type = ?
    • Name: = Camera?
    • Check the box called "Track depreciation of this asset."
      • Original Cost (below that checkbox) = $Total Purchase price of the item (Including the 25% portion that will be paid from my personal checking (my personal checking is NOT connected to Quickbooks Online).
      • "as of" date (for original cost) = Date Purchased?
      • Depreciation = ?
      • "as of" date (for depreciation) = ?

 

(What I listed above is about as far as I could make it on my own, and I'm not even that confident in my correctness of those first steps listed above. I presume some Journal entries are likely involved in this process, but the fact that I'll have 9 monthly payments coming through QBO's banking section for this item makes me question my Journal entry assumption, as well as how often I need to make Journal entries if they are needed..)

 

Thanks so much in advance for your wisdom! You're a total rockstar all over Quickbooks support channels and (I realize how convoluted this situation I'm inquiring about is, or at least to me it is anyway!)

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