Writing Off a Capital Asset

 You can write off a capital asset when you have no further use for it.  For example, a piece of equipment is ready to scrap, a building is being torn down, or you’re giving away a vehicle for free. 

You’ll need to remove the asset from your books as you can no longer claim ownership. 

Create a Withdrawal transaction with a line for each capital asset you are writing off, plus one additional line at the end.  For each asset you are writing off add a Capital asset sale line (C-) selecting the item you are writing off.  Use the original purchase for the write-off value.  Add an additional line like this for each other asset you are writing off (if any).  When finished adding lines for assets, add one additional last line choosing Income (IN) and pick your Gain on Sale of Capital Assets account. The amount for this line will be a negative value equal to the other lines added together.

One asset:

More than one asset:

Last updated on June 18, 2025 by FCC AgExpert