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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10149
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Are current year section 179 deductions recorded as depreciation

This answer was rated:

Are current year section 179 deductions recorded as depreciation expense on the books?

NPVAdvisor :

hi,

NPVAdvisor :

Yes, both section 179 and bonus depreciation are forms of depreciation and need to b recorded that way to correctly show the tax basis in the capital asset

NPVAdvisor :

Note that form 4562 (Depreciation and Amortization) is the tax form where you take the 179 deduction www.irs.gov/pub/irs-pdf/f4562.pdf‎

NPVAdvisor :

But from an accounting/bookkeeping perspective, the reason is that not recording this as depreciation will cause the tax basis inthe capital asset to be overstated.

NPVAdvisor :

Questions?

NPVAdvisor :

If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.


HOWEVER, if you need more on this, PLEASE COME BACK here, so you won't be charged for another question.

Lane and other Tax Specialists are ready to help you


Hi Steve,

... just checking back in, as I never saw you come into the chat.

Let me know if you have questions.

Lane

If this HAS helped, I would appreciate a feedback rating of 3 (OK) or better … That's the only way they will pay us here.

Lane and other Tax Specialists are ready to help you
H Steve ,


I'm just following up with you to see how everything is going. Did my answer help?


Let me know,
Lane