How to record a motor vehicle which has been donated for nil $

LynnP

I am unsure of the general ledger transaction for donating a vehicle which has accumulated depreciation

Acctd4

Was the MV acquisition recorded using a Fixed Asset Item or just posted direct to the relevant Asset account ?

If just posted to the account, create a Fixed Asset Item (I would normally just name this as per the rego eg 1XXX XXX)

Set up the donation beneficiary as a Customer in your Customer List

Create a Sales Receipt (or Tax Invoice) for the beneficiary dated the date of "Donation", using this new Item, at a rate of $ 0.00.

At EOFY, your Tax Agent will depreciate the MV up to this date & determine any balancing adjustment necessary.

LynnP

many thanks that is basically what I did but I was concerned about the clearing of the depreciation account I’ll leave that to the end of the year

Acctd4

@LynnP Is the entity receiving the donated MV a DGR (Deductible Gift Recipient) ?

I've been giving this some more thought & I now believe the Sales Receipt should be for the MARKET VALUE at the time of donation. If the recipient is a DGR, this asset sale (income) will then be offset by the donation (expense) ! 😬