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Bonus & 179 Deprecitation

  • 1.  Bonus & 179 Deprecitation

    Posted May 16, 2019 08:51 AM
    Our company is using NAV 2016 and we are going to start using the Fixed Asset module for tax depreciation. How to handle bonus and 179 depreciation entries? We entered it as traditional depreciation but the module then does not depreciate until it reaches the depreciation per the schedule assigned (i.e. -  Straight Line - 5 year).

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    Toni Kapp
    IMG Citrus, Inc.
    Vero Beach FL
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  • 2.  RE: Bonus & 179 Deprecitation

    TOP CONTRIBUTOR
    Posted May 17, 2019 05:44 AM
    ​Toni,
    I have this snipit from a document I used from 2004.  I'm sure it's still relevant but I haven't done this since 2004ish so please test first.

    Recording Section 179 Expense

     In order to record Section 179 expense, you will need to make a "FA Journal" entry. The entry will be very similar to the entry that was made to record the acquisition cost of the asset except that you will enter the Section 179 amount as a negative number. In effect, this is a negative acquisition cost entry. Be sure that you make the posting date of this entry the same as the posting date of the original acquisition entry.

     In order to track your Section 179 expense, is recommended that you use a "Document No." that is specific to this sort of entry. Otherwise, there is no differentiation in the system between Acquisition Costs and Section 179 Expense.

     Using the examples above, if a Section 179 expense of $5,000 was recorded and posted, the Tax Depreciation calculated for 2004 would be $2,000 (20% of a net acquisition cost of $10,000).

     Bonus Depreciation

     Bonus Depreciation should be handled in the same manner as the Section 179 expense.



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    Crystal Tollison
    Consultant
    ArcherPoint Inc.
    Lawrenceville GA
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