How to get something off my balance sheet

[Raeka]

Last tax year (2022), I had a tenant damage an item and she paid for it at its original cost . I had planned to replace it myself but never did. When she gave me the check, I didn't consider it was rent income so not  knowing how to treat it, I deposited it in the company bank account under Repairs category. It was only debit in that list. Then my balance sheet was off by that same amount. Someone suggested I enter it as a current liability on the balance sheet so that got it to balance last year.  But now I still haven't replaced the item and don't know if I will replace it anytime soon. But how do I get it off the balance sheet? It's too late to claim it on that 2022 return as income. And now I think I still have to keep it there at end of year balance sheet or I won't balance. I'm out of balance by a greater amount now and so am not sure how much I'm really off by because of this item.  How do I get rid of it on balance sheet? Do I have to do it this year? Thanks for any advice! I wish now, I had claimed as income or just let it go.

Rae

[Mike9241 · Accepted solution]

it should have been reported as income in 2022. then any undepreciated balance should have been written off assuming it no longer functioned. so technically 2022 should be amended. 

[Raeka]

Thank you for responding.

So I amend, report it as income and correct balance sheet to take it off? Thing is that it's less than $50. It seems like a lot of trouble for that amount. Is that is only way? Could I pay for a repair in the same amount as item this tax year and be able to take it off that way some how ? I do the small handyman jobs so I would be paying myself to fix it.

I went ahead and opened my 2022 return in TT and the change was easy enough. All is well now. Learned a lesson here.

Thanks