USA Service Date


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Hi Everyone,

Have a service date question. We leased a building and put the service date in the beginning of the year. Part of the security system did not meet the city requirements so we had to make adjustments and the security system was not placed in service until August of the same year. Do we put the in service date as of Aug or service date of the lease building for the security system? If Aug then do we just adjust the useful life for the life of the lease?
 
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kirby

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For security system, service date start date is the August date. Service date end date will be the end of the lease date, so yes adjust term.
 
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Kirby, thank you. Is there anywhere that I can read up and get more information online?
 
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kirby

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Not really. Things that are minor or mundane issues like this don't have a body of literature regarding these things.
In this case the end date is clear. It is the start date which is the question. You could, for convenience, use the original earlier start date and keep the term the same. But for example, advantage of sticking to the facts comes up with business property tax, measured every Jan 1. If system was actually not installed on Jan 1 then why pay business personal prop tax on it? That's why I support going with the actual install date.
 

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