General Asset Accounts—What You Need to Know

Posted on 06.22.12

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

The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.

Was this article helpful?

Fill out my online form.