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Depreciation records for equipment and other assets
Depreciation review starts with an asset register, purchase evidence and the date property entered service. Keep book schedules and tax elections distinct, with your CPA responsible for tax treatment.
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General information, not legal or tax advice.
Build a register that explains the property
Record the asset description, acquisition document, service date, business use and any disposal. IRS guidance generally uses MACRS for most property, with different recovery periods for different classes. A clear description helps your CPA distinguish office furniture from equipment instead of relying on a generic purchase category.
Sources: IRS Pub 946 (2025)
Flag federal expensing choices for CPA review
For tax years beginning in 2026, Publication 946 states a section 179 maximum of $2,560,000, reduced by qualifying property cost above $4,090,000. These limits do not mean every purchase qualifies. Supply invoices and service dates so your adviser can review eligibility and the available election.
Sources: IRS Pub 946 (2025)
Preserve acquisition dates for bonus-depreciation decisions
Publication 946 describes reinstated 100% special depreciation for certain qualified property acquired and placed in service after January 19, 2025. Earlier acquisitions can follow different treatment. Keep the purchase agreement with the service record instead of assuming the payment date alone determines the result.
Sources: IRS Pub 946 (2025)
Maintain separate California adjustments
The supplied FTB 2025 instructions identify California differences from federal section 179 limits and bonus depreciation. Those are dated instructions, not confirmation of future-year limits. Have your CPA review the applicable California depreciation forms in the FTB 3885 series and return approved adjustments for the ledger.
Sources: FTB 2025 Form 3885 instructions
Sources: build a register that explains the property
Prepare an asset register for your CPA
Tidwell helps reconcile the books and organize supporting schedules for your business decisions. We work with your CPA on tax questions and the financial records they need.