On 12/10/2021 10:18 AM, Gyle McCollam wrote:
This is a lot different than your first explanation. Under these circumstances where you
sold the company electronic equipment, it is indeed just an expense. On the company's
books, it is the same as if the company had bought the equipment from any other vendor
and would in no way be a "director's loan". Treat it like any other expense on
the company's books.
Accounting, not gnucash, but .......
a) This equipment, is it short lived? (expected to wear out in a year or
so). Is it "consumables" used up in processing?
b) If not, do the rules of your jurisdiction allow you to immediately
expense it? Or do they require you to treat this equipment as a fixed
asset depreciating over X years (in other words, becomes an expense as
it depreciates)
c) Note that usually a business will depreciate fixed assets as rapidly
as allowed. But it also might manipulate this to control in which year
has losses and in which profits. For example, might have to show a
profit in X of the last Y years to be considered a "business" as opposed
to a "hobby".
Michael D Novack
PS -- Again pointing out that I lack ":qualifications" to give
accounting advice or tax advice. PLEASE CONSULT A PROFESSIONAL.
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