Recording a large equipment purchase with depreciation

In the chart of accounts create a fixed asset type account named for whatever you are buying. Taht fixed asset account is the expense (reason) for the purchase when you enter the purchase details.

Depreciation is an option, the IRS does not care whether you claim it or not. I personally can not see a reason to not claim it since it lowers the net taxable profit annually. But even though the IRS does not care, they do care when you sell or scrap the equipment. At that time you must, must calculate the cost basis of the equipment to include the annual depreciation you should have posted. That is a pain IMO.

Accumulated depreciation is a sub account of the fixed asset, I usually set it up this way

fixed assets

>> equipment name

>> >> cost

>> >> accum deprec equipment name