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I have a farm client that sold various pieces of equipment that are not on my depreciation list. Somewhere along the way (years back), he failed to mention the purchases is my guess. The client took a loss so where do I enter the sales? Do I have to enter each item in the asset entry worksheet?
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If they aren't on your depreciation schedule, wouldn't that mean he ran them through an expense when he purchased them? If so, there wouldn't be a loss for something that has zero basis.
Slava Ukraini!
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Unfortunately, his bookkeeping skills leave a lot to be desired. His previous accountant was never given the information.
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Are you sure?
My vote is with Jeff.
The sales price = income since there is -0- basis.
There's also that pesky rule about depreciation allowed or allowable.
The more I know the more I don’t know.
