When taking a Section 179 deduction, how does that affect the numbers shown on the depreciation schedule? The "basis for depreciation" is the cost less the Section 179 deduction, as that is the amount left to be depreciated, right? Then what is shown as "previously taken"? Does that include the Section 179 amount? If so, at some point your numbers will show "previously taken" greater than "basis for depreciation".
Ditto re Bonus Depreciation.
Thanks.
There is no standard form for a "depreciation schedule", so your question about "the numbers shown on the depreciation schedule" is a little vague.
Yes, and so what? "Previously taken" will be the sum of 179/bonus deduction plus accumulated depreciation from prior periods. As an extreme example, if you take the entire cost as a Sec 179 deduction, then "previously taken" will certainly be greater than "basis for depreciation" because that latter amount will be zero.
At no point should "previously taken" be greater than the original acquisition cost, if that was what you were worried about. Many depreciation schedules that I've seen show the bonus/179 numbers in a separate column from the "regular" depreciation.
Thanks Mark. Yes, if I was doing this I would show the separate column so all the information is readily apparent.
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