USA Sec 179 and corp tax balance sheets

[ivlabonne]

If you Section 179 an asset or part of an asset for the tax return do you reduce your depreciable assets by the sec 179 thru the use of acc dep?
Became an issue when we took a large sec 179 and used it on the balance sheet as acc dep then the asset side was less than the liabilites due to outstanding loan on asset.

 

[kirby]

1. Using Sec 179 creates a difference in the asset cost between the accounting book and the tax books.
2. For example, you could see the asset depreciated over time on the acctg books while it may have been expensed on the tax books.
If what you are saying is that you are affecting the asset on the acctg books with the 179 effect, then that needs to be fixed.