Accumulated Depreciation subaccounts & tax line items


L

Lobo

I am creating two subaccounts, "Cost" and "Accumulated Depreciation",
for all fixed assets. For an S corp., what are the proper tax line
items to assign to the main account and the two subaccounts. I am
guessing that the main account, say "Desk," should be assigned to
"B/S-Assets: Buildings/oth. depr. assets", while the subaccount "Cost"
should be assigned to "<Not tax related>" and the subaccount
"Accumulated Depreciation" should be assigned to "B/S-Assets:
Accumulated Depreciation". Is this correct? Do I have the assignments
for the main account and the "Costs" account reversed?
 
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A

Allan Martin

Since there will be no entries to the main account it should not be linked
to any tax line. Unless your business is extremely small and will always
remain small setting up general ledger accounts for each fixed asset is
usually not the norm.
 

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