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    Aligh's Avatar
    Aligh Posts: 7, Reputation: 1
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    #1

    Oct 25, 2010, 12:09 PM
    Utilized 2009 section 179 on taxes, do I use the same amount for g/l entry?
    Utilized 2009 section 179 on taxes, do I use the same amount for g/l entry (total 2009 amount) or do I depreciate it over 5 years on the books?
    ArcSine's Avatar
    ArcSine Posts: 969, Reputation: 106
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    #2

    Oct 26, 2010, 06:22 AM
    That depends on any accounting-method requirements you may have regarding your externally-published financial statements. Just to make up an example, a company may have an outstanding loan for which the loan agreement requires monthly financials prepared using GAAP standards. Or the company may have outside investors who require GAAP financials.

    If your company is closely-held and doesn't have any such accounting-method requirements, you can take the simpler approach of just having one depreciation schedule that serves both the financials and the tax return.
    Aligh's Avatar
    Aligh Posts: 7, Reputation: 1
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    #3

    Oct 26, 2010, 09:11 AM
    Thanks!
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