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ADA tax credit

Level 4


My client spent money (categorized as fixed assets) in her business to be ADA compliant.  I filed form 8826 to ask for the credit.  I reduced the fixed assets to reflect the $5000 credit taken so instead of depreciating $20000, for example, we are depreciating $15000 on the tax returns.  

My question is how to adjust the books to reflect a lower value of fixed assets?  Currently assets per books is $20000, as that's what she paid for the ADA equipment.  

How should the $5K be recorded on the books?


Thank you


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1 Comment 1
Level 15

It's a book tax difference.

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