How to Process a Trade In on a New Vehicle

Are you ready to add a new fixed asset to QuickBooks and handle the trade-in of an old asset?
As your business grows, you may need to invest in new equipment, vehicles, or other fixed assets.
QuickBooks makes it easy to track these long-term assets and handle the accounting for them. When you purchase a new fixed asset, you'll first add it to your QuickBooks asset list.
Then, if you're trading in an old asset, you'll need to handle the trade-in value and any gain or loss on the disposal of the old asset.
In this video, I'll walk you step-by-step how to:
- Add a new fixed asset to your QuickBooks asset list
- Enter the details of your new asset including purchase price, estimated useful life, and other details
- Record the trade-in of an old asset and account for any gain or loss
Be sure to check out this week's video for the full walkthrough and to see these steps in action.
Share in the comments below if this helped you and if you had any ah-ha's 💡
If you're looking for the Online version of this video click here: • The Step By Step Guide...
Resources mentioned in the video 🔎:
Depreciation Tutorial: • How to enter Depreciat...
Want to learn how to do journal entries? Download my 'Master Debits & Credits for Journal Entries' Guide: ➡️ CandusKampfer.com/je-pdf
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Timestamps:
0:00 - Intro
0:19 - QuickBooks Online: The Step-By-Step Guide to Process Vehicle a Trade-In
0:35 - Details needed to enter
0:52 - Disclaimer: I'm not a Tax Professional
2:15 - When you are buying a new Asset and you're going to capitalize it
2:33 - Depreciation Video Tutorial
2:45 - When you're deciding if you're going to capitalize or not
3:38 - Tip: Gain or Loss of the Asset
4:12 - Summarizing Entries
5:30 - Setting up Assets and Loans
6:08 - Accounts Explained in QuickBooks Desktop
7:07 - Creating a Journal Entry in QuickBooks Desktop
8:36 - Free Download: Journal Entries Debit and Credits Cheat Sheet PDF
canduskampfer.com/je-pdf
11:55 - Checking Journal Entries in Chart of Accounts
12:13 - Making Accounts Inactive
12:26 - Finding Inactive Accounts
13:02 - Depreciation Video Tutorial / Debit and Credits Cheat Sheet PDF
13:26 - Customizing QuickBooks Workshop
canduskampfer.com/workshop
13:45 - Join Canduskampfers Weekly QuickBooks Tips and Tricks
canduskampfer.com/tips
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[@righttolearnrighttolearn2668]

Teacher can you explain : how to use( if and or) formula in the Excel and how can do financial statements entire in the Excel..???

[@ronstanley9638]

How do I make a journal entry to enter RECAPTURE OF CAPITAL COST ALLOWANCE? Thanks!

[@cohenhawk1]

If you want to show a vehicle on consignment and wondering how to resell same customer a new vehicle and give record the sales tax credit for the consignment against the sale of new vehicle?

[@buffykingry4940]

Hi Candus. Thank you for making this video. I am finding it very helpful. I do have a question... at the 3:27 mark, you talk about what numbers and math need to be used/done to find out the "gain/loss" on the asset. However, on the google sheet you show a little later in the video (specifically in the journal entry breakdown section of that sheet), the number you got as a gain/loss ($12,878.42), is listed beside "trade in on RAM-Ford Asset" and the "Gain/Loss" line in that section is blank. This is confusing to me. Are those two labels "trade in on RAM-Ford Asset" and "Gain/Loss" one in the same thing?

[@CandusKampfer]

Hi,
Thank you for watching our video.
I'm so glad to hear you've found it helpful!
If you're interested in more in-depth training on this topic, I recommend checking out our Confidence with QuickBooks program. To learn more you can attend our Customizing QuickBooks workshop. Save your seat here: CandusKampfer.com/workshop
Have a great day,
Samantha, Team Candus

[@CandusKampfer]

That's a great question! In the video, we had a few extra variables. The trade-in allowance vs book value and we ended up reducing the new asset instead of using gain or loss.
I left the line for gain/loss to explain when to use it and to show where it would go.
If you have a complex transaction I'd recommend checking with your tax professional how they'd prefer you track it.
Thank you for watching my videos 🤗

[@user-ku6pw2yb8s]

How do you do the entry if you are paying cash and have a down payment?

[@elviavalle687]

Hi if I have sever trucks can I make a subtitle for loan trucks or original cost ?