Types of Depreciation Schedules

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Most people that are looking for a depreciation schedule are doing so for one of two reasons: (1) They need to keep track of depreciation for IRS purposes or (2) they need to keep track of depreciation for bookkeeping purposes (yes sadly, these two are often different from each other).

If you are looking for depreciation schedules for tax reporting purposes you really have two options (read Pub 946 and use spreadsheets or use income tax software). You can head over to the IRS’s website and read Pub 946. Pub 946 contains all the information about how your assets should be depreciated for tax-reporting purposes. If you are already a tax accountant, then you probably already know a large portion of what is included in Pub 946. That being said, it is a good place to go when you have any questions. In my opinion the most useful section is the one that contains the depreciation tables. These tables classify assets into groups and then indicate the useful life of an asset for tax reporting purposes.

With the information from Pub 946 and some spreadsheet skills, you could whip up an excellent depreciation schedule for your business. However, nowadays most corporate income tax software comes ready to handle MACRS and tax depreciation. If the software is good, it will already have the pertinent information from Pub 946 that you need. This method seems a lot easier and I would recommend it to anyone who doesn’t really have a desire to read everything on the IRS website and then create your own spreadsheet. There are some die-hards out there who may prefer this method.

Another type of depreciation schedule is one that is used for your financial statements. There are a lot of rules on how these numbers have to be similar or different than the tax reported numbers but we will not delve into that discussion here. Just know that sometimes the numbers reported on the financial statements for depreciation are sometimes different than the numbers reported for tax purposes. The reason for this is you have two different governing bodies (the IRS governs tax rules while the FASB governs financial statement rules). This can get quite messy and often companies have two different sets of books (one for financial reporting purposes and one for tax purposes).

You can find preformatted depreciation schedules in Excel. Simply click on file, new, and then search for depreciation schedules. These are not that programming intense and you could probably make one yourself.

Another option is to buy some depreciation software. There are companies out there that specialize in depreciation and using some of their software may not be a bad idea for companies of all sizes. Probably the main reason I would use depreciation software over just a normal spreadsheet is for control purposes. Spreadsheets are known to proliferate quickly and information is often incorrect, duplicated, or outdated. With software, all of your information will be in one location making it easier to protect, update, and control.

Whether you are looking for a tax related schedule or a bookkeeping depreciation schedule I sincerely hope you are closer to your goal than you were previously. Find out more about business accounting.

The College Tax Credit

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The 2009 College Tax Credit

Learn about the new 2009 College Tax Credit from the #1 name in tax preparation software and services, TurboTax. In this video find out everything you need to know about the American Opportunity Tax Credit. Like how the income allowed for a family to claim the credit has been raised substantially and how the year of the college student who can claim the credit has been expanded beyond just freshman and sophomores. Not only is the credit dollar-for-dollar against your taxes but $1,000 of the $2,500 credit is refundable beyond what you paid in … Read more at 2009 Taxes

Tax Act

The 2009 College Tax Credit

Learn about the new 2009 College Tax Credit from the #1 name in tax preparation software and services, TurboTax. In this video find out everything you need to know about the American Opportunity Tax Credit. Like how the income allowed for a family to claim the credit has been raised substantially and how the year of the college student who can claim the credit has been expanded beyond just freshman and sophomores. Not only is the credit dollar-for-dollar against your taxes but $1,000 of the $2,500 credit is refundable beyond what you paid in taxes during the year.

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New Tax Benefits for the Unemployed

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New Tax Benefits for the Unemployed

If you were unemployed last year and are working on completing your tax return for 2009, there are a number of new tax benefits that can reduce the amount of tax you owe. The first place to look is at unemployment insurance which is normally taxable income. But during 2009, the first $2,400 of unemployment insurance is not taxable. So do not include this amount in your benefit when you complete your taxes.

There are a couple new wrinkles to IRA and 401K laws. You can avoid paying the 10% penalty on retirement … Read more at 2009 Taxes

Tax Act

New Tax Benefits for the Unemployed

If you were unemployed last year and are working on completing your tax return for 2009, there are a number of new tax benefits that can reduce the amount of tax you owe. The first place to look is at unemployment insurance which is normally taxable income. But during 2009, the first $2,400 of unemployment insurance is not taxable. So do not include this amount in your benefit when you complete your taxes.

There are a couple new wrinkles to IRA and 401K laws. You can avoid paying the 10% penalty on retirement plan withdrawals if you used the money for medical reasons or for any reason if you are over the age of 55.

Taxpayers that itemize can deduct their job hunting expenses on Schedule A. The floor for such deductions is 2% of your adjusted gross income (AGI), but any amounts over the first 2 percent can be itemized and deducted. Consider travel, marketing, and communication costs when totaling your yearly expense.

And finally, taxpayers that moved for a new job can deduct moving expenses as long as their new job is an additional 50 miles from their prior residence. You are allowed to deduct reasonable expense amounts for moving your household items, travelling yourself, 30 days of storage, utility connection and disconnection costs, lodging, and shipping for a pet.

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What is the Dependent Care Tax Credit?

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What is the Dependent Care Tax Credit?

When you are a working taxpayer and have dependents that require care while you are working, you can take a tax credit called the Child and Dependent Care Tax Credit, to help offset the expenses. The dependent can be a child under the age of 13 or a spouse that requires care due to physical or mental limitations.

You can also claim the tax credit when you are looking for work. This is considered the same as working for this tax credit. Full time students are considered to have earned income while … Read more at 2009 Taxes

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What is the Dependent Care Tax Credit?

When you are a working taxpayer and have dependents that require care while you are working, you can take a tax credit called the Child and Dependent Care Tax Credit, to help offset the expenses. The dependent can be a child under the age of 13 or a spouse that requires care due to physical or mental limitations.

You can also claim the tax credit when you are looking for work. This is considered the same as working for this tax credit. Full time students are considered to have earned income while they are away from the home to qualify for the tax credit.

You have to name the care provider on your tax return and it cannot be a spouse, dependent, or someone under age. And you must fulfill the residence test where the child or dependent spouse must have lived in the house for more than half the tax year.

You can claim $3,000 for one dependent or $6,000 for two dependents. See IRS Publication 503 for more information on completing Form 2441 and claiming this credit when you prepare your taxes this year.

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Tax Assistance from the IRS

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Tax Assistance from the IRS

The IRS is the sponsor of two volunteer programs to assist in the preparation of their taxes. The Volunteer Income Tax Assistance Program is for taxpayers that earn less than $49,000 a year. While the Tax Counseling for the Elderly Program is designed to help anyone over the age of 59. The programs provide volunteers who are specially trained to help these two groups. The volunteers want to make sure tax payers are filing their returns with the correct tax credits like the Earned Income Tax Credit and the Credit for the Elderly.

In partnership … Read more at 2009 Taxes

Tax Act

Tax Assistance from the IRS

The IRS is the sponsor of two volunteer programs to assist in the preparation of their taxes. The Volunteer Income Tax Assistance Program is for taxpayers that earn less than $49,000 a year. While the Tax Counseling for the Elderly Program is designed to help anyone over the age of 59. The programs provide volunteers who are specially trained to help these two groups. The volunteers want to make sure tax payers are filing their returns with the correct tax credits like the Earned Income Tax Credit and the Credit for the Elderly.

In partnership with community centers and nonprofit organizations, the IRS has setup 12,000 tax assistance sites and plans to open more. The AARP is a major organization involved in establishing these centers with over 5,000 Tax-Aid centers nationwide. Many of the centers also offer language specialist to interrupt the tax laws in your first language.

The military is another large organization that is in partnership with the IRS to assist in the preparation of tax returns. Military families worldwide can find volunteers to help them prepare their taxes and ensure they receive all tax credits they are eligible for. Combat zone tax benefits are a major concern of these volunteers. Contact your local community center or non-profit organization for locations and office hours.

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Notify the IRS When You Move

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Notify the IRS When You Move

If you move addresses during the year and especially during the tax season, make sure to notify the IRS of your new address. Form 8822 is the IRS form for changing your address on file with the taxing authority. Completing this form and send it to the IRS is important. Other options are also available.

When you file your tax return, you can change your mailing address on the mailing label that comes with your tax forms. This will notify the IRS of your new address quickly. You can also write your new … Read more at 2009 Taxes

Tax Act

Notify the IRS When You Move

If you move addresses during the year and especially during the tax season, make sure to notify the IRS of your new address. Form 8822 is the IRS form for changing your address on file with the taxing authority. Completing this form and send it to the IRS is important. Other options are also available.

When you file your tax return, you can change your mailing address on the mailing label that comes with your tax forms. This will notify the IRS of your new address quickly. You can also write your new address on the 1040 form in the address area of the form. Finally you can write your local IRS office and in written form, notify them of your address change.

Make sure to notify your employer and other companies supplying tax documents to you. You want to make sure all tax forms are delivered directly to your new address and do not get lost with the postal service or returned to the company. Forwarding your mail with the post office is also important. Make sure to complete an address change form with the USPS.

If you pay estimated payments utilizing a voucher provided by the IRS, continue to use the old vouchers until the IRS sends you new vouchers with your new address printed them on you. The IRS shares data with the USPS so your new address is shared with the IRS automatically when you tell the post office, but you should contact the IRS directly to ensure they have your correct address.

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