Land Asset Group
Land Asset Group Thailand
Land Asset Group Bangkok
I often am asked this question by bookkeepers and business owners alike. The Internal Revenue Service defines a fixed asset as property used in a trade or business or in an income producing activity that wears out or becomes obsolete and it must have a determinable useful life substantially beyond the tax year. This may include tangible real estate property and individual property and what is referred to as intangible property.

Examples of tangible real estate property would be of course buildings and the land they sit on as well as any improvements made to the property. And whilst land is considered a fixed asset, the IRS rules do not permit the value of the land to be depreciated. Consequently, with actual estate property the value of the land is kept in a separate balance sheet account from the value of the building. Frequently in actual estate transactions there are closing costs and legal fees. The IRS might think about these expenses to be part of the cost of buying the creating and will anticipate those costs to be added to the value of the creating and depreciated over the life of the creating. Check with your tax preparer for further clarification.

If you rent space to operate your business in then the rent is an expense that can be written off in the accounting period it is paid or accrued. However, ought to you make improvements to your rental space then that expense is considered to be Leasehold Improvements and if your lease extends beyond a year then those improvements would be looked at as fixed assets. Be careful with this one as some company leases may go from year to year but if you are staying beyond the term of the one year lease (renewing your lease that is) those improvements could be looked at getting a life that meets the def

You can maintain your blog by logging in to your Bravenet account. Once you are logged in you can customize the layout, colors, and features. In addition, you can add your own links, edit your profile, add your friends, and change many other options to personalize your blog.

Once you begin using your blog, you can view statistics in your members area to see how many people are reading your blog as well as where they come from.

We hope you enjoy your Blog. Be sure to tell all your friends about this great new service from Bravenet!