BHoffman Posted March 26, 2018 Report Share Posted March 26, 2018 Equipment was stolen and then recovered from an SCorp client. The equipment was originally purchased in 2006 for $50,000 and was fully depreciated. It was stolen in 2017 and insurance reimbursed for $30,000. The equipment was then recovered in 2017 and the SCorp client paid the insurance company $20,000 for its return. I'm confused on how to report this, but believe perhaps it is a casualty loss for the theft, and then a "new" purchase for the recovery. Any ideas? Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 26, 2018 Report Share Posted March 26, 2018 Just treat the equipment as if it had never been stolen and show 10k of other income. The net affect will be 10k income regardless of how complicated you make it. 4 Quote Link to comment Share on other sites More sharing options...
BHoffman Posted March 26, 2018 Author Report Share Posted March 26, 2018 So, my initial temptation to just lump the thing together against something like insurance expense wasn't exactly out of line? 1 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted March 26, 2018 Report Share Posted March 26, 2018 Bottom line is the same! Quote Link to comment Share on other sites More sharing options...
Lee B Posted March 26, 2018 Report Share Posted March 26, 2018 The netting of offsetting debits and credits like these is not helpful when you try compare yearly or monthly expenses. Since my primary function is monthly write up, I stopped netting things years ago. I would show this in Other Income as "Insurance Reimbursement" or ? 1 Quote Link to comment Share on other sites More sharing options...
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