On a tangent topic, you should check your state, local, etc laws on property taxes. Many, as does Texas, have exemptions for software. Meaning you do not pay property taxes on anything software related. I successfully claimed that all AP and SM assets value were 75% software and saved a load on property tax. I was 100% cambium and that might have been part of the ease. The proprietary nature makes more sense in that area.
Anyway, if you aren't sure about your states rules concerning this and have lots of money in gear out there it would be worth looking into. On Sat, Dec 12, 2015, 3:29 PM Chuck McCown <[email protected]> wrote: > That is why you would want to expense it. > > *From:* Bill Prince <[email protected]> > *Sent:* Saturday, December 12, 2015 2:28 PM > *To:* [email protected] > *Subject:* Re: [AFMUG] Calculating depreciation > 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 <[email protected]> > *Sent:* Saturday, December 12, 2015 3:03 PM > > *To:* [email protected] > *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 <[email protected]> > *Sent:* Saturday, December 12, 2015 12:53 PM > > *To:* [email protected] > *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 <[email protected]> > 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: [email protected] >>> 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: [email protected] >>> 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 mailto:[email protected] >>>>> <[email protected]> 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: [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 <%28702%29%20447-1247> >>>>> --------------------------- >>>>> Sonar Software Inc >>>>> The next generation of ISP billing and OSS >>>>> https://sonar.software >>>>> >>>>>
