by Ken Parsons (CPA) | Jan 25, 2022 | Depreciation Tax Tips
Accumulated depreciation refers to the tracking of total depreciation realized for an asset over its useful life. Tracking accumulated depreciation against an asset is required to ensure the depreciation claimed does not exceed the Book Value of the asset in question....
by Ken Parsons (CPA) | Jan 25, 2022 | Depreciation Tax Tips
For assets to be depreciated, the IRS requires that the item in question has a definable useful life. In other words, it must wear out, deplete over time, become unusable or antiquated, or lose its value. Also worth noting, is that to qualify for depreciation, the...
by Ken Parsons (CPA) | Jan 25, 2022 | Depreciation Tax Tips
With the exception of land most every type of tangible property qualifies for depreciation. This includes items such as: BuildingsMachineryVehiclesComputersOffice Furniture Depreciation Criteria To qualify as a depreciable item, the property must meet ALL of the...
by Ken Parsons (CPA) | Jan 25, 2022 | Depreciation Tax Tips
For any business looking to deduct the depreciation cost of an asset, determining its salvage value is a necessary step as the purchase price less the salvage value must be spread out over the assets useful life. Let’s dig in and discuss how these items factor...
by Ken Parsons (CPA) | Jan 25, 2022 | Depreciation Tax Tips
Depreciation is the process of writing off an asset’s value over time. It’s an annual income tax deduction which permits tax filers to recover the cost of property purchase over its useful life. Or it may help you to think of this as allocating the cost of an...
by Ken Parsons (CPA) | Jan 22, 2022 | Depreciation Tax Tips
What is Form 4562? IRS Form 4562 was created to enable filers to claim a deduction for depreciation, and amortization. It further enables filers to make the depreciation election under section 179 to expense property, and will allow a means to provide the necessary...
by Ken Parsons (CPA) | Jan 22, 2022 | Depreciation Tax Tips
Assets have a discrete life, and as such, are eligible to be depreciated over time. With the double declining balance method, you depreciate less and less of an asset’s value over time. That means you get the biggest tax write-offs in the years right after you’ve...
by Ken Parsons (CPA) | Jan 22, 2022 | Depreciation Tax Tips
As computers, tools, peripherals, and other business equipment wears out over time, their value decreases – this concept is known as a depreciation in value. It’s essential that all businesses understand the various depreciation methods which may be...
