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Accounting & Bookkeeping & Small Business Forum
Accounting, Bookkeeping, Marketing, and Small Business Resource
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ruth
Joined: 27 Sep 2006
Posts: 7
Location: Garland, Utah
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| Posted: Mon Oct 30, 2006 1:03 pm Post subject: Depreciation |
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My client has purchased a new computer. Do I start depreciating it on the month that was purchased or do I start the following month?
Thank you. |
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Richard Noot
Joined: 20 Aug 2005
Posts: 912
Location: Minnesota
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| Posted: Tue Oct 31, 2006 11:13 am Post subject: Re: Depreciation |
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ruth wrote: My client has purchased a new computer. Do I start depreciating it on the month that was purchased or do I start the following month?
Thank you. Neither. You start depreciating it when IT IS PUT IN SERVICE. You would
use cost or FMV whichever is LOWER as the basis. These days fmv is
the norm. |
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