I've got a client who hires my company because of our technical experience and the projects often have a variety of equipment costs that aren't consumed. Think computers, cameras, shipping cases, power tools, etc.. We buy the equipment and then the customer reimburses us 100%, no markup.
It's never come up before, but customarily, who owns that equipment?
We obviously have the receipts and we have possession of the items. We count the reimbursement as income and depreciate the equipment as if it was our own. The client likely immediate deducts the costs as they include it in our 1099. Most of the equipment the client has never even seen. The client has no use for the items and lacks the warehousing to store it or the technical skill to use it. But if we ever decided to sell the equipment, should we send the proceeds to the client? Typically, would the client ever request that we liquidate the equipment?