Set-up and creating data files > Capital assets > Splitting a capital asset

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Splitting a capital asset

Use the Capital Asset dialogue box to split a capital asset into two separate assets. For example, if you bought a tractor with a front-end loader and remove the front-end loader to sell it separately, you would split the front-end loader off the tractor to create a new capital asset.

To split a capital asset:

  1. Click Capital Assets from the Setup menu. The Capital Asset dialogue box appears.
  2. Select the capital asset you want to split.
  3. Click Split. The Capital Asset Split dialogue box appears. The information for the original asset is displayed on the right.
  4. Enter the following information for the new capital asset:
    • Description – Enter a description.
    • Tag - Enter a reference to sort your assets. For example dairy, cattle, tractors, etc.
    • Serial number – Enter the serial number if applicable.
    • Purchase date – Enter the date you purchased the capital asset.
    • Business % – The business per cent is the same as the original asset.
    • Personal drawings account – The personal drawings account number is the same as the original asset.
    • Original cost – Enter the total original cost, including any GST/HST and PST that you haven’t claimed for the asset.
    • GST/HST paid – If you purchased the asset after December 31, 1990, and paid GST/HST at that time, enter the total GST/HST paid on the capital asset. 
      • Note: This field isn’t available if the GST/HST claimed for the original asset is 0.
    • Adjusted cost – Enter the adjusted cost, which is the original cost minus any business investment tax credit taken on this asset.
    • Asset life (years) – Enter the capital asset’s expected useful life in years.
    • Salvage value – Enter the capital asset’s estimated value at the end of its useful life.
    • Depreciation rate – Enter the yearly depreciation rate as a per cent. For example, if the depreciation rate is 6.25%, enter 6.25.
      • Note: The Asset life, Salvage value and Depreciation rate values are used by the asset depreciation management tool to calculate different types of depreciation for the asset (see Asset Depreciation).
    • Net book value – Enter the net book value of the asset, which is equal to the asset’s original cost minus depreciation and amortization. This value will appear on the capital asset schedule report.
  5. Click Save. 

 

Last updated on June 24, 2016 by FCC AgExpert