Quickbooks Depreciation Expense
Here is another Forum posting response we did.
From: Eric Ou
Subject: question
Message Body:
i have one question i dont know how to do, please help me out.
the thing is for 2011 my company spent $50000.00 for decoration , and right now i dont know which part i need put in for expense. please please please help me out.
Thanks.
The Short Answer to This is
Deprecation would be:
Built In Fixture – 15 years
External such as Furniture, Picture Frames – 7 years
You can Choose
Straight Line Method OR Macrs
This is something you should get a tax consultant
as it depends on your specific situation.
Call Cel Mercado with www.yourtaxshop.com
1st Consultation is Free
(800) 965-0338
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I don;t understand either the question or the answer.
“i dont know which part i need put in for expense”
Which part of what? Can someone explain his situation?
“Deprecation would be:
Built In Fixture – 15 years”
15 years of what? Depreciation of what?
Neither the question nor the answer contained the word “tax”. But suddenly, why is this related to tax? What is going on here?
Sorry I’m just a novice. Thank you for your tutorials!
Think of it like your car. Once you drive it off the lot, it begins to loose value. The same occurs with office furniture. For the straight line, 15 yr. example, you would take the total cost of the built in furniture (cost), less its salvage value (what it will be worth at the end of the 15 yrs.), and divide by its useful life (in this example, 15 yrs.).
If you spent $15,000, for instance, you could account for a $1000 salvage value leaving you with $14,000 for the depreciable cost.
So, to calculate your depreciable cost: $15,000 – $1,000 = $14,000
Your depreciation expense: 100%/15yrs = 6.7%
multiply 6.7% by $14,000 to get your annual dep. expense: $933.33
Every year, you would record that amt. on your taxes to help you out. Your CPA will know what to do. I can help more too if you would like to know anything else.