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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Starting a small business. Once operational this year, can

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Starting a small business. Once operational this year, can all my equipment and construction materials needed for the buisness purchased this year be used as a tax write off?

MyVirtualCPA :

Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.

MyVirtualCPA :

What type of business is this?

MyVirtualCPA :

Your equipment typically must be depreciated over time, but if it meets the qualifications you can write off the entire amount under section 179

MyVirtualCPA :

Everything you need to know about section 179 can be found, here: http://www.section179.org/

MyVirtualCPA :

Construction materials needed to produce items that are sold are deductible when you sell the constructed item. For example, if you build houses you would write off the cost of the materials in the year you sell the house, not necessarily the year you buy the materials.

MyVirtualCPA :

Keep in mind that you can only deduct these items once operational.

Customer:

This is a micro brewery. I have spent money on construction materials to bring my leased mill space to make it operational. The equipment would be the brewing equipment (kegs, tanks, fermenters, forklift , ect.)

MyVirtualCPA :

In this case you would depreciate these assets.

Customer:

Ok, thank you very much! Just making sure!

MyVirtualCPA :

No problem. Do you need anything else?

MyVirtualCPA :

If not, please rate my response as "excellent" so that I may receive credit for assisting you today

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Thanks, Josh for your positive rating. Please come back and visit MyVirtualCPA for any of your tax, finance, or social security needs. It was a pleasure working with you today.