Would CPE be asset class 48.38?
https://www.irs.gov/pub/irs-pdf/p946.pdf
From: Chuck McCown
Sent: Saturday, December 12, 2015 3:03 PM
To: af@afmug.com
Subject: Re: [AFMUG] Calculating depreciation
When you have fiber in the ground and a backhoe in the yard, it becomes a bit
more significant.
From: Jeremy
Sent: Saturday, December 12, 2015 12:53 PM
To: af@afmug.com
Subject: Re: [AFMUG] Calculating depreciation
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 <keefe...@ethoplex.com> 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: af@afmug.com
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: af@afmug.com
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 <simon@sonar.software>
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: af@afmug.com
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: af@afmug.com ; memb...@wispa.org
Subject: [AFMUG] Calculating depreciation
When you depreciate your fixed assets, what method do you use to
calculate it?
--
Simon Westlake
Skype: Simon_Sonar
Email: simon@sonar.software
Phone: (702) 447-1247
---------------------------
Sonar Software Inc
The next generation of ISP billing and OSS
https://sonar.software
