Recent Articles

Depreciation and Section 179

A concept comparing regular depreciation to that which is allowed under the IRS code section 179, accerlerated depreciation. Section 179 allows the maximum depreciation in order to reduce a tax obligation for the small business entrepreneur.

Accelerated Depreciation – An Explanation

12/17/2013

When it comes to depreciation, no two businesses are alike. Unlike traditional straight line depreciation where the asset value is cost out to depreciation expense in equal increments over a given life expectancy, accelerated depreciation expenses [...]

The Various Forms of Depreciation

02/22/2013

There are various forms of depreciation used in the small business world.  In general, depreciation is not required but it is advisable.  So a small business owner should understand depreciation and the various forms of how to calculate the [...]

What is a K-1?

02/14/2013

A K-1 is a reporting tool to the Internal Revenue Service.  It is used by Partnerships, S-Corporations and Trusts to report the taxpayer’s share of income, deductions, and credits.  A K-1 is similar to Form W-2 or 1099 in that the information [...]

The Definition of Fixed Assets

01/05/2013

Any tangible item not consumed within one accounting cycle (typically a year) and providing long term utility is referred to as a Fixed Asset.  Traditional images include manufacturing equipment, tools, transportation vehicles, buildings and [...]

Small Business Tax Depreciation – Section 179

12/23/2012

The Internal Revenue Service sets the depreciation allowance based on the Code as promulgated by Congress.  The most commonly referenced section is 179.  This is a form of accelerated depreciation allowing the small business owner the opportunity [...]

Depreciation – This is Weird Accounting

12/11/2012

In the world of accounting, there are two types of expenses on the reports widely misunderstood.  They are depreciation and amortization.  I will try to help the novice gain an understanding of depreciation in this article.  So if you can, clear [...]