Can you get away with that on a big purchase though? Or is it because
you are buying it in small quantities?
E.g. if I buy 100 million dollars worth of CPE, I can't imagine I'd get
away with expensing it.
On 12/11/2015 11:47 PM, Ken Hohhof wrote:
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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