Property Depreciation

Is it possible in QD 2010 to depreciate the value of an automobile
showing in the Property and Debt list, over a time span of several
Reply to
RichardF wrote in news:d2af1ce6-d427-44ce-a89a-
I have entered balance adjustments in the asset account of my car
Reply to
?Hi, Richard.
showing in the Property and Debt list, over a time span of several years?
Not really. :>(
When I searched for "depreciation" in Quicken Help, a little digging found this line: "Depreciation can be complex to compute. Check your IRS Schedule C publications or consult a tax professional for information about calculating depreciation."
I've not used Quicken versions other than Deluxe for several years, so maybe they have capabilities I don't know about. But trying to decipher the lists of features in Help and on, I don't see anything that makes me think that any version will actually calculate depreciation for you. MAYBE QuickBooks will do it, but I've never used QB so I can't comment on that.
The idea of depreciation is quite simple, of course: No asset lasts forever, but many last more than a single year, so the cost of such an asset should not be charged in full to the expense of doing business in the year it is acquired; the cost should be spread over multiple years as the asset is used in the business.
Accountants have been wrestling with this simple idea for generations and have developed some pretty good ways of allocating the cost over the periods that benefit from that cost. But two major factions have interfered with efforts to create a clear, consistent way to deal with this cost-allocation process.
Business managers have pressured accountants to change their calculations to show more or less profits in a particular year to enhance reports to their investors and others. And the US Congress has played fast and loose with depreciation rules to raise more or less taxes without changing tax rates - or to influence businesses to invest more or less in depreciable assets.
As a result of these pressures, there are myriad ways to calculate depreciation, and many of them don't make theoretical sense at all. Intuit is probably wise to keep Quicken out of the quagmire of trying to select depreciation methods and calculate depreciation expense in a product that sells for less than $100 per year.
Which brings us back to your question. No, Quicken cannot actually compute depreciation for you. But if you can provide the number, you can enter it as a non-cash entry. You will need to debit Depreciation Expense (by whatever name you choose) and credit Accumulated Depreciation. Then, when preparing a balance sheet or net worth report, deduct the accumulated amount from the cost of the asset to show the remaining cost to be allocated over future periods.
For non-business assets, such as your home or personal auto, you might use a method designed to estimate current market value, rather than to allocate your cost basis over time. If the home you bought for $200,000 is now worth only $160,000, you can adjust to current value by creating a valuation account, similar to accumulated depreciation. In a better housing market, that valuation account might even have a positive balance, showing that your home is now worth $300,000. ;
Reply to
R. C. White
(much good text, omitted - then)
Thank you, sir, for your detailed reply.
It looks as if I'm on my own here.
Reply to

Site Timeline Threads

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.