Fixed Assets - Remove Capital Gain from Disposal of an asset
Right now it's not possible to remove the Capital Gain line from the disposal journal when the sales price is more than the original purchase price.
This means, that if you have a motor vehicle that you sold for higher than it's purchase price, the Fixed Asset register will not let you dispose of this asset without recording a capital gain - even though motor vehicles have no capital gains tax on them.
This issue needs to be fixed.
Aimee Poyner
shared this idea
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Sharon Lyon
commented
1. The tax depreciation is the method we've used; depreciation is posted to the GL at the end of the financial year upon completion of the Financial Statements.
2. Asset FA-0046 Sprayer Hardi Commander 5030 Boom Spray 2005
a. Purchased 15/12/23 Roseville Farming Pty Ltd
b. Sold on the 9/9/25 $20,500 (excl GST)
c. Book value $20,000 (purchase price)
d. Tax Depreciated in full in the financial year 2024
e. Sale processed via Debtors – INV-00283 9.9.25 $22,550
i. Posted to 1308.00 Asset Sales – Gain/Loss
3. To correct the XERO Journal ID 20441
a. DR Z6651 Accumulated depreciation 20,000
b. CR 1308.08 Asset Sales – Profit/Loss 20,000
(To correct XERO Asset Register disposal journal entriesThis is not an ideal process, it seems XERO Asset Register is generalizing its processes.