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Categories AgExpert Accounting AgExpert Analyst
Created by AgExpert Support
Created on Feb 14, 2016

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Hello,
We are in the process of building a shed, never had to add one before, is this considered a capital purchase or an asset purchase, and how do I set it up. So far only have the first deposit cheque for 1/4 of the pymt. to post.

  • ADMIN RESPONSE
    Feb 10, 2025

    Good morning Betsy!

    We have a great Knowledge Base article that goes over this exact situation. When you build a shed like this, is is not considered a capital asset until you are able to actually use it to assist you in earning income. Therefore, we use what we call the "Work in Progress Method". You can click on the link below to read the article - it should help you out!

    http://community.fccsoftwar...

    I hope this helps!

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