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March 21, 2024
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Purchased Vehicle under my Single Member LLC - how to record if using Section 179?

  • March 21, 2024
  • 1 reply
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after spending ample amount of time researching how to record purchasing a vehicle, i think i have somehow gotten myself more confused and have not found any simple straightforward guidelines...

 

Background Info:

  1. Purchased vehicle (over 6k lbs) on 12/23/23.
  2. Want to record based on section 179 and completely depreciate it in tax year 2023.
  3. Paid for vehicle in full with a check for $34k (no loans or trade ins)

 

Can someone please list step by step how to record in QB online if I am using section 179?  this is what i have so far...

  1. Create a Fixed Asset Account (Balance Sheet) for Vehicle
  2. Debit Vehicle $34k, Credit Banking $34k (all on Balance Sheet)

 

  1. Create a Depreciation Expense account (Income Statement)
  2. Create an Accumulate Depreciation account (balance sheet)
  3. Debit Depreciation Expense $34k, Credit Accumulated Depreciation $34k

    

Best answer by Rainflurry

@BY18 

 

That all looks good.  Personally, I like to create a separate Section 179 Depreciation expense sub-account of Depreciation Expense.  A small detail:  the balance sheet account is Accumulated Depreciation, not Accumulate Depreciation.  Forgive me if that was just a spelling error.  

1 reply

Rainflurry
March 22, 2024

@BY18 

 

That all looks good.  Personally, I like to create a separate Section 179 Depreciation expense sub-account of Depreciation Expense.  A small detail:  the balance sheet account is Accumulated Depreciation, not Accumulate Depreciation.  Forgive me if that was just a spelling error.  

BY18Author
March 23, 2024

thank you!!  yes, just a typo!