I have an asset item called "equipment" and an expense item called "non
capital equipment". If it costs less than $500 each or is likely to be
gone, retired or used up before it can be depreciated, it gets expensed not
depreciated. I am reluctant to capitalize CPE. Routers, servers, APs,
backhauls get capitalized if they cost >$500. My accountant has not
complained.
If I purchase something other than equipment, like a vehicle or a building,
it goes in its own asset category and my accountant decides what
depreciation schedule is appropriate. I suppose some big piece of software
might get depreciated, I wouldn't know.
Not sure we are handling financed equipment properly. Typically I have 3
year $1 buyout leases, I don't own it for 3 years, and then it appears to be
worth $1. With a fair market value buyout, I guess you could take that and
depreciate it, but I would probably argue with my accountant about a 5 year
depreciation schedule on equipment that is already 3 years old.
Other special categories would be stuff like "goodwill" and intellectual
property. I guess when you pay $1000 per sub for a WISP whose hard asset
have a book value of $1.58, the rest is goodwill and gets depreciated.
Then there's Section 179.
-----Original Message-----
From: Simon Westlake
Sent: Friday, December 11, 2015 10:16 PM
To: [email protected]
Subject: Re: [AFMUG] Calculating depreciation
How are you defining 'like' assets? Would you group together things like
routers and access points? Or are you getting more specific than that?
On 12/11/2015 10:14 PM, Chuck McCown wrote:
There are lots of depreciation methods. Straight line, accelerated, mass
depreciation.
When you acquire assets over time it it is a pain in the ass to have a
schedule for each item.
Mass allows you to throw all like assets into a common pot and take a
percentage of the pot as depreciation expense each year.
That way you don't have to track when they enter.
-----Original Message----- From: Simon Westlake
Sent: Friday, December 11, 2015 8:54 PM
To: [email protected] ; [email protected]
Subject: [AFMUG] Calculating depreciation
When you depreciate your fixed assets, what method do you use to
calculate it?
--
Simon Westlake
Skype: Simon_Sonar
Email: [email protected]
Phone: (702) 447-1247
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