Last year I elected Section 179 for a computer that I paid $3500. My question is with the company books. Do I enter Accumulated Depreciation of $700 or do I enter the Section 179 amount of $3500. Any help would be greatly appreciated.
Jabs
You enter the Section 170 amount - can be entered same as regular depreciation. I just make notes in memo. N Owen To reply, please change "ONE" to numeral
"Jabs" wrote
If your accounting books and/or your accounting policy is to report income and expenses in line with your tax reporting (called the income tax method of accounting), then you should have booked the depreciation expense (regular) and the Section 179 expense - as expenses - and the corresponding entry in a double entry system would be to the contra-asset account of Acumulated Depreciation.
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.