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Accounting, Payroll & Pension Issues/Depreciation & Amortization
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Question
Thanks Arthur for taking the time to answer my question:
My business was registered in September 2009. Capital assets of purchase of franchise, automobile were incurred, but no revenue was made and franchise training in 2009.
Should I account the portion of depreciation and amortization expenses in 2009, or can I start the process from 2010?
Ryan
Typically a new business begins taking a depreciation expense when the business begins in operation. That is not necessarily when it is incorporated or setup -- rather when the business begins in operation.
I expect from your brief scenario that this means in 2010 rather than 2009.
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Accounting, Payroll & Pension Issues
Answers by Expert:
Arthur Naman
Expertise
General accounting and bookkeeping questions. How to do monthly bookkeeping, how to prepare financial reports. How to reconcile accounts.
I cannot answer questions pertaining to pension or retirement planning.
This is not a forum to have homework answered. Please do your own homework.
Experience
30 years' experience doing tax and accounting work
Education/Credentials
MPA from Univ. of Texas at Austin, MBA Golden Gate Univ, San Francisco CA
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