Depreciation for Tax and Accounting
Nearly all businesses invest in assets that are used in operating the business. The cost of long lived assets is spread over the useful life of the asset and expensed against revenue for both accounting and tax purposes through a process called depreciation. However, the methods allowed under Generally Accepted Accounting Principles (GAAP) and the methods allowed for tax purposes are quite different. This webinar will cover the various methods of depreciation, which are allowed for tax purposes and which are allowed under GAAP, and why businesses must keep more than one set of books when it comes to accounting for fixed assets.
In this webinar, you will learn:
- Which property is depreciable and which costs must be included (capitalized).
- Application of specific depreciation methods and the information is required to use a particular method
- Methods for accelerating cost recovery, including bonus depreciation and section 179 first year expensing..
- How to track and reconcile depreciation expense and book value when more than one method is required.
- Factors in computing depreciation
- Cost, Useful life, Depreciation method, Salvage value
- Accounting methods
- Straight line, Units of production, Sum of the years’ digits, Declining balance
- Tax methods
- MACRS, ACRS, Section 179, Bonus depreciation, Intangible assets
- Other issues
- AMT, Listed property, Depreciation recapture,
Patrick Haggerty is a tax practitioner, author, and educator. His work experience includes non-profit organization management, banking, manufacturing accounting, and tax practice. He began teaching accounting at the college level in 1988. He is licensed as an Enrolled Agent by the U. S. Treasury to represent taxpayers at all administrative levels of the IRS and is a Certified Management Accountant. He has written numerous articles and a monthly question and answer column for payroll ... View Full Profile