Question
ADA tax credit
Hello
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
