Skip to main content

Depreciation for Accounting and Tax Purposes

Compliance Key INC - Accounting and Finance Training

Patrick A Haggerty

Overview
Nearly all businesses invest in assets that are used in operating the business. The cost of long lived assets is spread over the useful life of the asset and expensed against revenue for both accounting and tax purposes through a process called depreciation. However, the methods allowed under Generally Accepted Accounting Principles (GAAP) and the methods allowed for tax purposes are quite different. This webinar will cover the various methods of depreciation, which are allowed for tax purposes and which are allowed under GAAP, and why businesses must keep more than one set of books when it comes to accounting for fixed assets.

Why should you attend this webinar?
It is important from a compliance standpoint to understand that the purpose of depreciation from a financial accounting and reporting standpoint differs from the purpose from a tax standpoint. Those differences affect the methods allowable for each purpose and the methods are not compatible. Knowing which methods to use and how to apply those methods is important for assuring compliance in financial reporting and tax return preparation. Public companies can be sanctioned for failing to comply with financial reporting standards and even small businesses can experience difficulties in areas where compliant financial reports are required, such as loan applications. In the tax area, improper methods or errors in applying depreciation can lead to fines and penalties for improper tax computations, disallowance of deductions, or recapture of allowable, but not taken, depreciation as ordinary income upon disposal of the asset. The JCTA tax act enacted major changes to bonus depreciation and Section 179 Expensing. Understanding how those methods interact with and affect tax depreciation is critical.
Areas Covered in the Session:
  • Definitions
  • Factors in computing depreciation
    • Cost, Useful life, Depreciation method, Salvage value
  • Accounting methods
    • Straight line, Units of production, Sum of the years' digits, Declining balance
  • Tax methods
    • MACRS, ACRS, Section 179, Bonus depreciation, Intangible assets
    • Need to know changes to depreciation under the JTCA
  • Other issues
    • AMT, Listed property, Depreciation recapture,
  • In this webinar, you will learn:
  • Which property is depreciable and which costs must be included (capitalized).
  • Application of specific depreciation methods and the information is required to use a particular method
  • Methods for accelerating cost recovery, including bonus depreciation and section 179 first year expensing..
  • How to track and reconcile depreciation expense and book value when more than one method is required.
Who can Benefit:
  • Business owners and executives
  • Controllers
  • Accounting Executives and Managers
  • Cost and Managerial Accountants
  • Financial Accountants
  • Internal Auditors
  • IT Professionals
  • Risk Officers
  • Audit Committee Members
  • Public Accountants
  • Enrolled Agents
  • Tax Professionals
Visit:https://www.compliancekey.us/webinarDetails?industryId=3&webinarid=1239&speakerid=70

Compliance Key INC
717-208-8666

Labels:
Location: United States

Comments

Post a Comment

Popular posts from this blog

HIPAA changes 2018 and How to comply?

Compliance Key INC  -  HIPAA W ebinar                                                   Brian L Tuttle Brian Tuttle is Keynote Speaker at Compliance key Inc . He is Certified Professional in Health IT (CPHIT), Certified HIPAA Professional (CHP), Certified Business Resilience Auditor (CBRA) with over 17 years experience in Health IT and Compliance Consulting.     Webinar Id:   HIPHBLT001 10:00 AM PT | 01:00 PM ET  01/23/2018 Duration: 90 mins  Overview This lesson will be addressing how practice/business managers (or compliance offers) need to get their HIPAA house in order as HIPAA is now fully enforced and the government is not using kid gloves any more. It will also address major changes under the Omnibus Rule, Trump administration, and any other applicable updates for 2018 and beyon...
Post a Comment
Read more

Strategies for Becoming a Business Partner to Your Healthcare Leaders.Compliance Key INC -

Compliance Key INC  -  Healthcare Training Online                                                    Jay Anstine Mr. Anstine's professional background includes working on the provider and the payer side of the market, for large for-profit and non-profit health systems, and small physician-owned entities. In tackling the countless regulatory and operational issues for these diverse organization types, he has developed a deep understanding of the business of healthcare and the regulations that govern the industry.  Webinar Id:  LSHCSJA022  10:00 AM PT | 01:00 PM ET  12/13/2017  Duration 60 mins  Overview All too often compliance is seen as an obstacle or otherwise viewed negatively by healthcare leaders. This presentation will discuss strategies and insights to help the compliance of...
Post a Comment
Read more

SOX Compliance: Accounts Receivable Risks and Controls

Overview The accounts receivable process includes the sub-cycles of acquiring and accepting customer orders; writing sales contracts; granting customer credit; shipping or otherwise delivering products or services; billing and recording sales and lease transactions; maintaining and monitoring accounts receivable; instituting effective collection procedures; recording and controlling cash receipts; establishing pricing and promotional activities; and properly valuing receivable balances. In management's selection of procedures and techniques of control, the degree of control implemented is a matter of reasonable business judgment. The common guideline used in determining the degree of internal controls implementation is that the cost of a control should not exceed the benefit derived. The Order to Cash Process (O2C) Process is comprised of several sub-processes that must have a foundation of internal controls for SOX 404 certification process. This webinar wil...
Post a Comment
Read more