10 year life is a bit on the long side.
bp
<part15sbs{at}gmail{dot}com>
On 12/12/2015 1:21 PM, Ken Hohhof wrote:
Would CPE be asset class 48.38?
https://www.irs.gov/pub/irs-pdf/p946.pdf
*From:* Chuck McCown <mailto:ch...@wbmfg.com>
*Sent:* Saturday, December 12, 2015 3:03 PM
*To:* af@afmug.com <mailto:af@afmug.com>
*Subject:* Re: [AFMUG] Calculating depreciation
When you have fiber in the ground and a backhoe in the yard, it
becomes a bit more significant.
*From:* Jeremy <mailto:jeremysmi...@gmail.com>
*Sent:* Saturday, December 12, 2015 12:53 PM
*To:* af@afmug.com <mailto:af@afmug.com>
*Subject:* Re: [AFMUG] Calculating depreciation
I let my accounts figure it out as well. Some items (core network
equipment, switches, routers, etc.) are depreciated over 5 years, and
some over 3 years. If I had to deal with all of this I'd likely throw
in the towel. A good accountant is worth their weight in gold.
On Sat, Dec 12, 2015 at 12:40 PM, Keefe John <keefe...@ethoplex.com
<mailto:keefe...@ethoplex.com>> wrote:
This is something the accountants figure out.
On 12/12/2015 11:01 AM, Ken Hohhof wrote:
By the time I retire CPE, no one wants to buy it.
I worry the e-waste recycler will charge us to take it.
Especially with commodity prices falling.
-----Original Message----- From: Chuck McCown
Sent: Saturday, December 12, 2015 10:51 AM
To: af@afmug.com <mailto:af@afmug.com>
Subject: Re: [AFMUG] Calculating depreciation
I know we expensed all of our CPE. Then when you sell it is
100% capital
gain.
But if you depreciate all of your CPE, when you sell you have
to "recapture"
all of the depreciation expense and that is effectively 100%
capital gain.
No easy way to win this game.
-----Original Message----- From: Simon Westlake
Sent: Saturday, December 12, 2015 9:17 AM
To: af@afmug.com <mailto:af@afmug.com>
Subject: Re: [AFMUG] Calculating depreciation
Ah, didn't realize this was a GAAP thing. I'll go dig into it,
trying to
figure out what info would be needed to input a formula to do this
automatically.
On 12/12/2015 10:12 AM, Tushar Patel wrote:
GAP accounting standard allows you to come up with company
policy. Where policy can say any item under $1000 will be
expense. After that it does not matter how many items you
buy under that price. I am not accountant, you may want
to check with accountant who are familiar with GAP
standards. WISPA has vendor member kiesling, who can guide
you in such matter.
Tushar
On Dec 12, 2015, at 9:58 AM, Simon Westlake
<simon@sonar.software> wrote:
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: af@afmug.com <mailto:af@afmug.com>
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: af@afmug.com <mailto:af@afmug.com> ;
memb...@wispa.org <mailto:memb...@wispa.org>
Subject: [AFMUG] Calculating depreciation
When you depreciate your fixed assets, what
method do you use to
calculate it?
--
Simon Westlake
Skype: Simon_Sonar
Email: simon@sonar.software
Phone: (702) 447-1247 <tel:%28702%29%20447-1247>
---------------------------
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The next generation of ISP billing and OSS
https://sonar.software
