I let my accounts figure it out as well. Some items (core network equipment, switches, routers, etc.) are depreciated over 5 years, and some over 3 years. If I had to deal with all of this I'd likely throw in the towel. A good accountant is worth their weight in gold.
On Sat, Dec 12, 2015 at 12:40 PM, Keefe John <[email protected]> wrote: > This is something the accountants figure out. > > > On 12/12/2015 11:01 AM, Ken Hohhof wrote: > >> By the time I retire CPE, no one wants to buy it. >> >> I worry the e-waste recycler will charge us to take it. Especially with >> commodity prices falling. >> >> >> -----Original Message----- From: Chuck McCown >> Sent: Saturday, December 12, 2015 10:51 AM >> To: [email protected] >> Subject: Re: [AFMUG] Calculating depreciation >> >> I know we expensed all of our CPE. Then when you sell it is 100% capital >> gain. >> But if you depreciate all of your CPE, when you sell you have to >> "recapture" >> all of the depreciation expense and that is effectively 100% capital gain. >> >> No easy way to win this game. >> >> -----Original Message----- From: Simon Westlake >> Sent: Saturday, December 12, 2015 9:17 AM >> To: [email protected] >> Subject: Re: [AFMUG] Calculating depreciation >> >> Ah, didn't realize this was a GAAP thing. I'll go dig into it, trying to >> figure out what info would be needed to input a formula to do this >> automatically. >> >> On 12/12/2015 10:12 AM, Tushar Patel wrote: >> >>> GAP accounting standard allows you to come up with company policy. Where >>> policy can say any item under $1000 will be expense. After that it does not >>> matter how many items you buy under that price. I am not accountant, you >>> may want to check with accountant who are familiar with GAP standards. >>> WISPA has vendor member kiesling, who can guide you in such matter. >>> >>> Tushar >>> >>> >>> On Dec 12, 2015, at 9:58 AM, Simon Westlake <[email protected]> >>>> wrote: >>>> >>>> Can you get away with that on a big purchase though? Or is it because >>>> you are buying it in small quantities? >>>> >>>> E.g. if I buy 100 million dollars worth of CPE, I can't imagine I'd get >>>> away with expensing it. >>>> >>>> On 12/11/2015 11:47 PM, Ken Hohhof wrote: >>>>> I have an asset item called "equipment" and an expense item called >>>>> "non capital equipment". If it costs less than $500 each or is likely to >>>>> be gone, retired or used up before it can be depreciated, it gets expensed >>>>> not depreciated. I am reluctant to capitalize CPE. Routers, servers, >>>>> APs, >>>>> backhauls get capitalized if they cost >$500. My accountant has not >>>>> complained. >>>>> >>>>> If I purchase something other than equipment, like a vehicle or a >>>>> building, it goes in its own asset category and my accountant decides what >>>>> depreciation schedule is appropriate. I suppose some big piece of >>>>> software >>>>> might get depreciated, I wouldn't know. >>>>> >>>>> Not sure we are handling financed equipment properly. Typically I have >>>>> 3 year $1 buyout leases, I don't own it for 3 years, and then it appears >>>>> to >>>>> be worth $1. With a fair market value buyout, I guess you could take that >>>>> and depreciate it, but I would probably argue with my accountant about a 5 >>>>> year depreciation schedule on equipment that is already 3 years old. >>>>> >>>>> Other special categories would be stuff like "goodwill" and >>>>> intellectual property. I guess when you pay $1000 per sub for a WISP >>>>> whose >>>>> hard asset have a book value of $1.58, the rest is goodwill and gets >>>>> depreciated. >>>>> >>>>> Then there's Section 179. >>>>> >>>>> >>>>> -----Original Message----- From: Simon Westlake >>>>> Sent: Friday, December 11, 2015 10:16 PM >>>>> To: [email protected] >>>>> Subject: Re: [AFMUG] Calculating depreciation >>>>> >>>>> How are you defining 'like' assets? Would you group together things >>>>> like >>>>> routers and access points? Or are you getting more specific than that? >>>>> >>>>> On 12/11/2015 10:14 PM, Chuck McCown wrote: >>>>>> There are lots of depreciation methods. Straight line, accelerated, >>>>>> mass depreciation. >>>>>> When you acquire assets over time it it is a pain in the ass to have >>>>>> a schedule for each item. >>>>>> Mass allows you to throw all like assets into a common pot and take a >>>>>> percentage of the pot as depreciation expense each year. >>>>>> That way you don't have to track when they enter. >>>>>> >>>>>> >>>>>> >>>>>> -----Original Message----- From: Simon Westlake >>>>>> Sent: Friday, December 11, 2015 8:54 PM >>>>>> To: [email protected] ; [email protected] >>>>>> Subject: [AFMUG] Calculating depreciation >>>>>> >>>>>> When you depreciate your fixed assets, what method do you use to >>>>>> calculate it? >>>>>> >>>>> -- >>>> Simon Westlake >>>> Skype: Simon_Sonar >>>> Email: [email protected] >>>> Phone: (702) 447-1247 >>>> --------------------------- >>>> Sonar Software Inc >>>> The next generation of ISP billing and OSS >>>> https://sonar.software >>>> >>>> >> >
