Hello,

I have a question regarding the tax accounting treatment and journal entries for the following situation. The company ordered a commercial computer from a retailer in December 2017 and received an invoice. The computer was shipped and delivered in January 2018, and the retailer charged the company's debit card at the time of shipment.

The company wishes to expense the computer in 2017 under Section 179, but the computer was not "placed in service" until it was delivered in 2018. Therefore, I believe the Section 179 deduction should apply to 2018, not 2017.

So, should the computer order not be recorded in 2017? Instead, should it be fully expensed in 2018 under Section 179 (crediting cash and debiting an expense account)?

Thank you.