General Asset Accounts — What You Need to Know

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In an unexpected addition to the December 2011 “repairs vs. capitalization” temporary regulations, the IRS revised pre-existing rules that provide a method of grouping assets for depreciation purposes – the general asset account (GAA). GAAs provide a method for businesses to simplify the way in which they account for the MACRS depreciation of multiple assets. GAAs allow businesses to depreciate multiple like-assets it purchases as one asset (for example, an apartment complex owner that buys 200 refrigerators in 2012 for $750 each can depreciate its purchases as one asset costing a total of $150,000, rather than tracking depreciation for each individual refrigerator). General Asset Accounts — What You Need to Know

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Keiter CPAs is a certified public accounting firm serving the audittax, accounting and consulting needs of businesses and their owners located in Richmond and across Virginia. We focus on serving emerging growth businesses and companies in the financial servicesconstructionreal estatemanufacturingretail & distribution industries and nonprofits. We also provide business valuations and forensic accounting servicesfamily office services, and inbound international services.

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