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helenaabreu
New Member

Partial asset deletion disposal because broken

I have a class for assets that have various items for 20,000 of that amount I need to dispose an asset that has a value of 3500 but zero value as item is broken

2 Replies
TurboTaxBrenda1
Moderator

Partial asset deletion disposal because broken

Because you still have items in that class, the proper way to record the broken/near zero valued item would be to enter the item and class as a disposition and enter the sale price as $1. The remaining loss on the item will be depreciated over time along with the other items in that class.

mikio
Returning Member

Partial asset deletion disposal because broken

Hi, just to clarify, you don't have to deduct the $3500 anywhere on the T2, only the $1 in "proceeds from disposition" under CCA? Does it still have to be entered in your books? This will cause a discrepancy?

 

I had to sell part of an asset (consisted of several parts that were sellable on their own). I had a loss of $63 (difference between $ sold for and book value). I recorded the proceeds of $690 in "proceeds of disposition" on my corporate taxes but I'm not sure where to enter the deduction of the book value from the asset itself (as it was recorded in quickbooks).   

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