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Book vs Tax Depreciation in Wave

farmermarkerfarmermarker Member Posts: 2

I've read much about book vs tax depreciation and some how I am still left confused.

My understanding that Wave can only be used for one type of depreciation book or tax.

My tax software and a spreadsheet keeps track tax depreciation so I am looking to use Wave for book depreciation.

Are there best practices to follow when depreciating assets? As a farmer, some used equipment barely depreciates, can that be reflected in my books in Wave?

Thanks for your insights!

in Accounting Technical Support

Comments

  • BarsinBarsin Member, Moderator Posts: 2,041 ✭✭✭

    Hey there @farmermarker

    We do have a method to keep track of depreciation in Wave. Check out this article on DEPRECIATION IN WAVE and let us know if you have any followup questions :smile:

  • farmermarkerfarmermarker Member Posts: 2

    Thanks BarsinA. I did read through that. My questions is how to calculate the depreciation. Should I be using the same Declining Value formula as needed for my income tax or should I consider using the Straight Line depreciation formula? Thanks for your advice.

  • CalliePCallieP Member Posts: 439 admin

    Hi @farmermarker , thanks for getting back. We here in the Community team aren't accountants, and so we can't offer advice on 'what to do' - we focus on 'how to do'. So if you're unsure about which type of depreciation you should use, I would recommend reaching out to an accounting professional to be sure!

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