NEWS
BYTES
February 1998
Editor:
Scott Gottlieb, CPA
Assistant editor: Susan A. Maffetone, CPA
IRS
DEFINES DEDUCTIONS FOR Y2K COSTS
Many
business owners have Year 2000 conversion problems coming up.
Remember
it is not just your PC's on your desktop, it can be your phone
system, your billing programs, your alarm systems, and many
of your software programs.
The
IRS has decided that costs associated with fixing the Y2K problems
must be deducted as if they were expenses (or deductions) related
to the development, purchase, and lease of software.
The IRS Procedure 97-50 says Year 2000 conversion costs fall
within the purview of Revenue Procedure 69-21. The Financial
Accounting Standard Board had already ruled the Y2K costs for
"repairs" must be expensed the year they occur, while
cost of equipment and software required for Y2K fixes can be
capitalized and deducted in the way new equipment acquisitions
are.
Make
sure to contact us before you plan any major software/equipment
purchases so we can work together on your office expenses.
Accounting
Software tip of the month
Close all Excel Workbooks in One Step
Hold
down the <Shift> key when you click on the File
Menu and you'll see the Close All option in the menu.
December
Words of Wisdom:
Never
use the format command without backing up your data. Make
sure your backup worked and your data is not corrupted.
It might take a longer time, but keep in mind how long it would
take to restore your data from scratch.
And
don’t forget to add this to your bookmark or favorites
menu to help you in visiting us monthly.
Other
issues of NewsBytes see our archives
.
