Recording an insurance payout for a fully depreciated vehicle asset.

Forum|Forum|9 months ago
September 16, 2025
1 reply
17 views

The Insurance paid us the market value for a vehicle that was written off. The vehicle had taken all of its depreciation. How do I record this transaction in Quickbooks?

QuickBooks Online

Rainflurry

Level 11

@Rafael1520

Since the vehicle was fully depreciated, 100% of the insurance proceeds are considered gain. Let's take a vehicle that was purchased for $50,000 and the fair market value at the time of the loss was $25,000. Here is the journal entry (JE) you would make in QB:

	Debit	Credit
Bank Account (Deposit)	25,000
Accumulated Depreciation	50,000
Vehicle (Fixed Asset - to close)		50,000
Gain on Asset Disposal (other income)		25,000

Sign up

Login with SSO

Let's get you signed in

Login with SSO