[Future Ninja]

is it possible to record a PPE fixed asset transaction and then expense immediately on the same year by depreciating the whole amount? As per company accounting policy, life cycle of vehicle is only for 1 year.

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Anonymous]

I don't see why not… as long as you are operating under your company policy it should be fine. In this particular situation it sounds like you would just be recognizing monthly depreciation for 12 months. The other option would be to work through the appropriate process to update or modify the policy.

[Anonymous]

Agree that depreciation should be straight lined over 12 months. I'm assuming your question refers to a vehicle that would be purchased (more or less) on January 1? If not I would think the life would go beyond the end of a December 31st fiscal year.

[mla1169]

For book purposes, yes of course. For tax purposes I'm not entirely sure however.

FAR- 77
AUD -49, 71, 84
REG -56,75!
BEC -75

Massachusetts CPA (non reporting) since 3/12.

[Anonymous]

Good point @mla.

OP, maybe start here: https://www.irs.gov/taxtopics/tc704.html

[Ntw6817]

For tax purposes, just section 179 the thing.

[Future Ninja]

Thank you guys for all your inputs.

AUD - 79 (expired) retaking July 28,2016
FAR - 76 expiring July 31, 2016
BEC - 85
REG - 74,74,74,74,59,70,

[Author]

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