Skip to main content
O
OptoWA
November 11, 2023
Question

Computer Purchased with Monthly Payments on Personal Card

  • November 11, 2023
  • 2 replies
  • 0 views

I'm a cash-basis service business taxed on Schedule C, and I purchased a new computer for my business - under the $2500 de minimus to not have to capitalize the purchase. I bought the computer with my personal credit card connected to the place I purchased it. However, I'm paying monthly payments for 12 months at 0% interest. 

 

How should this computer / monthly payments best be accounted for? I'm assuming it can't be expensed at once since it's paid with monthly payments? 

2 replies

Service
Service
November 15, 2023

You have two issues. 1. How do you set up an expense that has monthly payments. 2. How do you make monthly payments using a card that is not part of your business? I kinda think you should speak to your accountant about this. 

Rainflurry
Rainflurry
November 15, 2023

@OptoWA 

 

It can be fully expensed.  The fact that you have monthly payments is irrelevant.  To record the purchase, make a journal entry: debit Computer Expense (or whatever expense account is appropriate) and credit Owner's Equity (or Owner's Contribution).  If you make the payments personally, there is nothing further you need to record.       

Terms & ConditionsAccessibility statement