USA Section 179 accounting?


AGH the CPA

VIP Member
Joined
Jun 16, 2017
Messages
132
Reaction score
19
Country
United States
I may be over thinking this. If we buy a laptop for $2000 and want to section 179 it, what are the journal entries that we need to make?

DR office equipment (expense account)
CR cash?

OR

DR office equipment (fixed asset account)
CR cash

DR depreciation expenses
CR accumulated depreciation?
 
Ad

Advertisements

Ad

Advertisements

Werner Reisacher

VIP Member
Joined
Jun 30, 2017
Messages
234
Reaction score
26
Country
Netherlands
Agree that the latter journal entry is correct.
Just a word of caution. For companies that have large amounts of Fixed Assets that they can depreciate under Section 179, I suggest that they depreciate their assets based on the usual depreciation rates in the books and apply the Section 179 bonus depreciation in the tax accounts only. Otherwise, the comparison of trends and performance analysis on a yearly basis becomes difficult and meaningless.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

USA Section 179 Depreciation Deduction for Non-Profit Organizations 2
Section 179 0
USA section 179 0
Section 179 2
section 179 0
Section 179 7
QRP and section 179 0
USA section 179 depreciation 1

Top