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Should a satellite phone be classed as a Fixed Asset even though it has been depreciated in the first year under the instant asset write-off?

 
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Best answer 05-15-2019

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Re: Should a satellite phone be classed as a Fixed Asset even though it has been depreciated in the first year under the instant asset write-off?

Yes, you keep the asset and the accumulated depreciation on the books until you dispose of it or sell it

 

If you use the accelerated deprecation in year one, and for some reason sold it in year two, you would be faced with what is called recapturing income, the amount of depreciation you took in the first year that would be attributable to the following years becomes income.

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Established Community Backer ***

Re: Should a satellite phone be classed as a Fixed Asset even though it has been depreciated in the first year under the instant asset write-off?

Yes, you keep the asset and the accumulated depreciation on the books until you dispose of it or sell it

 

If you use the accelerated deprecation in year one, and for some reason sold it in year two, you would be faced with what is called recapturing income, the amount of depreciation you took in the first year that would be attributable to the following years becomes income.

Community Explorer **

Re: Should a satellite phone be classed as a Fixed Asset even though it has been depreciated in the first year under the instant asset write-off?

Thanks very much. 

Established Community Backer ***

Re: Should a satellite phone be classed as a Fixed Asset even though it has been depreciated in the first year under the instant asset write-off?

You're Welcome