SELL OF DEPRECIATED VEHICLE
How do i record an entry for a sell of a fully depreciated vehicle.
I will also need an invoice for this sell of vehicle to provide to the buyer of the vehicle
Forum Discussion
2 Replies
You mention that the car is fully depreciated.
Cost - Accum Depn = Nil.
Lets say the Car is sold for $11,000 incl GST.
$1000 is remitted to the ATO on the next BAS.
There would then be a Profit of $10,000 on the Car.
This could appear in Other Income.
Discuss with your Tax Accountant the Tax Treatment if you have a replacement car.
Yes, you would need to provide a Tax Invoice to the Buyer.
Your Tax Accountant should advise on the above.
Duncan
Hi PRIYAPINDORIYA,
When you buy or sell a depreciated asset, you’ll usually set up a separate account to track the depreciation. Still, the exact accounts can differ, so it’s best to check with your accountant or financial adviser about where those amounts should go, and keep everything tidy and compliant.
Regards,
Genreve
