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How to record donation of equipment to charitable organization in quickbooks. E.G. Donated a lawn mower to a charitable org, how do I record it for tax purposes.

how to record donation of equipment to charitable organization in quickbooks.  E.G. Donated a lawn mower to a charitable org, how do I record it for tax purposes.

We donated a fairly expensive lawn mower to a local org.  So how do I record this in quickbooks?  Its not cash and its not inventory we sell.

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Best answer 10-19-2018

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Established Community Backer ***

Only a C Corp has Charitable Expense for the bookkeeping....

Only a C Corp has Charitable Expense for the bookkeeping. For the other tax entity type, you are "pass through" entities. That means this is the same as Removing the asset from the business personally, then giving it away, personally. And unfortunately, that method would mean it is part of Sched A and subject to limitations, while you get "charged" for that removal from the business as a Personal event (which might be a taxable value to you).

"then you should write off the net book value"

Yes, and that difference (recapturing prior depreciation and removing Basis) = Gain or Loss on Disposal of Asset = A Business Expense, already. There is no Further Expense for this.

"We donated a fairly expensive lawn mower to a local org."

That is sort of meaningless for you; your own Asset values are the values, for you.

For the organization, you gave a Donation In Kind. You can Charge them as a sale, then write it off as a credit memo; this is 100% discount, in other words. The invoice to them gives them proof of donation value as Public Support.

For the disposal of this asset, you need to work with your own CPA. Work with them to avoid this flowing to personal taxes.
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Established Community Backer ***

Only a C Corp has Charitable Expense for the bookkeeping....

Only a C Corp has Charitable Expense for the bookkeeping. For the other tax entity type, you are "pass through" entities. That means this is the same as Removing the asset from the business personally, then giving it away, personally. And unfortunately, that method would mean it is part of Sched A and subject to limitations, while you get "charged" for that removal from the business as a Personal event (which might be a taxable value to you).

"then you should write off the net book value"

Yes, and that difference (recapturing prior depreciation and removing Basis) = Gain or Loss on Disposal of Asset = A Business Expense, already. There is no Further Expense for this.

"We donated a fairly expensive lawn mower to a local org."

That is sort of meaningless for you; your own Asset values are the values, for you.

For the organization, you gave a Donation In Kind. You can Charge them as a sale, then write it off as a credit memo; this is 100% discount, in other words. The invoice to them gives them proof of donation value as Public Support.

For the disposal of this asset, you need to work with your own CPA. Work with them to avoid this flowing to personal taxes.
Established Community Backer ***

If the equipment was recorded as a fixed asset when purch...

If the equipment was recorded as a fixed asset when purchased and depreciated, then you should write off the net book value to Donations expense.  If it was all written off as an expense when purchased, or if it's full depreciated, then there is nothing to record.

Established Member

This makes sense Im just not sure how to acutally do this...

This makes sense Im just not sure how to acutally do this in quickbooks online.
Established Community Backer ***

Is it in the books as a fixed asset?

Is it in the books as a fixed asset?