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Started By
Message
New Accountant Needs Help: § 179 Depreciation Deduction
Posted on 2/14/14 at 6:45 pm
Posted on 2/14/14 at 6:45 pm
Already tried the Money Board with no luck....
I just started at a CPA firm a couple of months ago and have only been doing tax returns for two weeks now. Needless to say, I’ve realized that I learned nothing in school and have utterly no clue what I’m doing. My boss is really beginning to lose his patience with me and I’m worried I’ll be fired soon if I don’t get it together in a hurry.
On Tuesday, he told me to do the tax return for one of our clients, a construction company. The only new asset the company acquired this year was a 2014 F350 on November 29, 2013. He told me that before I do the tax return, I’m to make a depreciation schedule for the truck and then an adjusting journal entry in QuickBooks to reflect it. I have never heard of Section 179 until now and have been trying to teach it to myself. I just looked at all the MACRS charts to try and figure this thing out and now I’m more confused than ever! What is the formula I should use? What should my journal entry look like? What should my depreciation schedule look like? Someone please explain this to me like I'm 3.
Here is what I think I’ve determined thus far:
Since the truck is considered a heavy vehicle (over 6,000 lbs.), I can only take a Section 179 deduction of $25,000? Since it is a vehicle, it has a depreciable life of 5 years? Since it was purchased on November 29th, I should use mid-quarter convention on the 5 Year MACRS chart of 5%?
Is any of this sounding right? If so, now what do I do with all of this information to make the depreciation schedule and adjusting journal entry. We use Pro System for tax returns, so I went on the Form 4562 and typed in the date, the truck was purchased, that it had a life of 5 years, and that the guy paid $38,501 for it, then the system spit out all these #’s on the depreciation schedule and I have no clue how they were arrived at. (See attached image where hi-lighted. Ignore red marks.)
When I went to my boss and showed him the depreciation schedule and my adjusting journal entry and what my balance sheet looked like, he became extremely annoyed and told me to pack up my stuff and go home and not to think about coming back through his office doors until I fully understand depreciation. Well, I’ve been out of the office for two days now, due to the office being closed for a snow storm. I’m almost certain the office will be open tomorrow and I STILL have no clue what I’m doing. I think he may fire me tomorrow if I don’t know how to fix this. HELP!!!!
I just started at a CPA firm a couple of months ago and have only been doing tax returns for two weeks now. Needless to say, I’ve realized that I learned nothing in school and have utterly no clue what I’m doing. My boss is really beginning to lose his patience with me and I’m worried I’ll be fired soon if I don’t get it together in a hurry.
On Tuesday, he told me to do the tax return for one of our clients, a construction company. The only new asset the company acquired this year was a 2014 F350 on November 29, 2013. He told me that before I do the tax return, I’m to make a depreciation schedule for the truck and then an adjusting journal entry in QuickBooks to reflect it. I have never heard of Section 179 until now and have been trying to teach it to myself. I just looked at all the MACRS charts to try and figure this thing out and now I’m more confused than ever! What is the formula I should use? What should my journal entry look like? What should my depreciation schedule look like? Someone please explain this to me like I'm 3.
Here is what I think I’ve determined thus far:
Since the truck is considered a heavy vehicle (over 6,000 lbs.), I can only take a Section 179 deduction of $25,000? Since it is a vehicle, it has a depreciable life of 5 years? Since it was purchased on November 29th, I should use mid-quarter convention on the 5 Year MACRS chart of 5%?
Is any of this sounding right? If so, now what do I do with all of this information to make the depreciation schedule and adjusting journal entry. We use Pro System for tax returns, so I went on the Form 4562 and typed in the date, the truck was purchased, that it had a life of 5 years, and that the guy paid $38,501 for it, then the system spit out all these #’s on the depreciation schedule and I have no clue how they were arrived at. (See attached image where hi-lighted. Ignore red marks.)
When I went to my boss and showed him the depreciation schedule and my adjusting journal entry and what my balance sheet looked like, he became extremely annoyed and told me to pack up my stuff and go home and not to think about coming back through his office doors until I fully understand depreciation. Well, I’ve been out of the office for two days now, due to the office being closed for a snow storm. I’m almost certain the office will be open tomorrow and I STILL have no clue what I’m doing. I think he may fire me tomorrow if I don’t know how to fix this. HELP!!!!
This post was edited on 2/14/14 at 6:46 pm
Posted on 2/14/14 at 6:47 pm to Type A
Don't you have a professional group you belong to of some kind who could help you? How about an accounting message board of some kind?
You are kind of taking a risk with asking shite like this here. You will have people like PeeJay trying to help you with your problem.
You are kind of taking a risk with asking shite like this here. You will have people like PeeJay trying to help you with your problem.
This post was edited on 2/14/14 at 6:57 pm
Posted on 2/14/14 at 6:50 pm to notiger1997
quote:
You will have people like PeeJay trying to help you with your problem
Posted on 2/14/14 at 6:53 pm to Type A
so you got your CPA, but have no experience?
Posted on 2/14/14 at 6:53 pm to Type A
Pretty sure you're breaking some sort of professional code by posting this shite here. Especially with the specifics
Posted on 2/14/14 at 6:53 pm to Type A
I'm fairly certain this thread ends with you doing a 6 month term in federal prison.
Posted on 2/14/14 at 6:55 pm to Type A
How about not post confidential shite.
Also, talk to your boss and stop being a pussy. Ask for help, from the guys you work with.
Also, talk to your boss and stop being a pussy. Ask for help, from the guys you work with.
Posted on 2/14/14 at 6:55 pm to Type A
honestly, I know you are shook up over this...but your boss should have known exactly what you get when you hire someone right out of college...and if he hasn't set you up with a mentor to show you the ropes, then he is probably not someone that you want to work for anyway...
all a degree does is teach you how to learn new things...it is up to the employer to show you the business...
not saying that you shouldn't try your damndest to learn this stuff on your own, but that is my take on it....
all a degree does is teach you how to learn new things...it is up to the employer to show you the business...
not saying that you shouldn't try your damndest to learn this stuff on your own, but that is my take on it....
Posted on 2/14/14 at 6:57 pm to Type A
It's probably time you joined a new professoin you don't seem to be very good at the one you picked.
Maybe something with a little less thinking and problem soliving.
Maybe something with a little less thinking and problem soliving.
This post was edited on 2/14/14 at 6:58 pm
Posted on 2/14/14 at 6:57 pm to VetteGuy
Then frick him. What is it people so lazy to figure things out for themselves.
Posted on 2/14/14 at 6:58 pm to Type A
This does not look to be the job for you, what type of qualifications did you have to get this job, would be tough for your boss to train you in the middle of tax season
Oh, and if you figure out sec 179 and deprecation, don't forget that this vehicle is eligible for accelerated 50% deprecation the first year because of its weight
Oh, and if you figure out sec 179 and deprecation, don't forget that this vehicle is eligible for accelerated 50% deprecation the first year because of its weight
Posted on 2/14/14 at 6:59 pm to Tigerpaw123
quote:
Oh, and if you figure out sec 179 and deprecation, don't forget that this vehicle is eligible for accelerated 50% deprecation the first year because of its weight
You just fricked his mind.
Posted on 2/14/14 at 6:59 pm to Tigerpaw123
quote:
Oh, and if you figure out sec 179 and deprecation, don't forget that this vehicle is eligible for accelerated 50% deprecation the first year because of its weight
Exactly.
Posted on 2/14/14 at 7:00 pm to Type A
You should talk to my accountant. Sorry for your problem.
Posted on 2/14/14 at 7:06 pm to Type A
Make sure it is maxing out 179 at 25k and take bonus depreciation. The tax program will calculate it for you.
Posted on 2/14/14 at 7:12 pm to Type A
quote:
I have never heard of Section 179 until now
What kind of school doesn't require a tax class for an accounting degree? Mine required two of them.
Posted on 2/14/14 at 7:14 pm to Smoke7024
25k is for 2014. pretty sure he is doing 2013 taxes.
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