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lansing-cheryl
Dec 11, 2018 5:36 AM UTC
Solved

How do i set up an account for a leased piece of equipment? It is a lease/purchase contract,

entered into a lease/option \ to buy contract on a piece of equipment in 2015, the contract will mature in 2018, at that time we can purchase via cash or a equipment loan, and purchase the piece of equipment, returen the piece of equipment, or continue to lease the piece of equipment. So how do i go about setting that up inQB. Starting the Company up in as a "New Company" the current"company is so messed up, want to enter everything manually, and correctly, help please

    john-pero
    john-peroAnswer
    Dec 11, 2018 5:36 AM UTC
    Leasing of equipment is a simple straight expense with no other current activity or posting required. Most irs forms segregate leased equipment from leased land so use an expense account called Leased Equipment or Equipment Leased. There as well would be no reason to separate lease payments for more than one lease into seoarate accounts.  Only at lease end might you have activity other than leasing, such as excess damage (Repairs) or mileage (vehicle expense) or purchase (asset creation of buyout)
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    8 replies

    john-pero
    john-peroAnswer
    Dec 11, 2018 5:36 AM UTC
    Leasing of equipment is a simple straight expense with no other current activity or posting required. Most irs forms segregate leased equipment from leased land so use an expense account called Leased Equipment or Equipment Leased. There as well would be no reason to separate lease payments for more than one lease into seoarate accounts.  Only at lease end might you have activity other than leasing, such as excess damage (Repairs) or mileage (vehicle expense) or purchase (asset creation of buyout)
      arkvalleyinfo
      Dec 11, 2018 5:36 AM UTC
      john.pero3276, after the lease is finished and we have purchased the vehicle, how do I post that now to an asset account? It was initially an operating lease account with straight expenses taken.
      qbteachmt
      qbteachmt
      Dec 11, 2018 5:36 AM UTC

      It seems you had a Capital Lease, not an Operating lease. Your CPA can help you deal with the issues of "expensed already."

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