Description

Nearly all businesses invest in assets that are used in operating the business. The cost of long-lived assets is spread over the useful life of the asset and expensed against revenue for both accounting and tax purposes through a process called depreciation. However, the methods allowed under Generally Accepted Accounting Principles (GAAP) and the methods allowed for tax purposes are quite different. This webinar will cover the various methods of depreciation, which are allowed for tax purposes and which are allowed under GAAP, and why businesses must keep more than one set of books when it comes to accounting for fixed assets.

Learning Objectives:-

• Which property is depreciable and which costs must be included (capitalized)?
• Application of specific depreciation methods and the information required to use a particular method
• Methods for accelerating cost recovery, including bonus depreciation and section 179 first-year expensing.
• How to track and reconcile depreciation expense and book value when more than one method is required.

Agenda:-

• Definitions
• Factors in computing depreciation
• Cost, Useful life, Depreciation method, Salvage value
• Accounting methods
• Straight line, Units of production, Sum of the years’ digits, Declining balance
• Tax methods
• MACRS, ACRS, Section 179, Bonus depreciation, Intangible assets.