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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 11823
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 4 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 4 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