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CFEPro789
CFEPro789, Accountant
Category: Tax
Satisfied Customers: 536
Experience:  Former IRS Agent, Master of Accountancy, Tax Return Preparer
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I am buying $15,000 worth of computers from a company in Canada.

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I am buying $15,000 worth of computers from a company in Canada. How will this affect me when writing it off on my s-corp taxes.

jgdarragh2285 :

Hi my name is XXXXX XXXXX I will be helping you today with your tax question. The fact that the company is based in Canada does not limit you being able to deduct the taxes. You are putting $15,000 worth of assets in use and the computers will qualify under Section 179 Depreciation, a fairly recent amendment to the tax code where you can depreciate the full value of an asset the first year it is put into use. Therefore your section 179 depreciation expense will be included on your K1 when you are provided it after filing the 1120S.

jgdarragh2285 :

So in short, you can depreciate, or deduct the full $15,000 this year.

Customer:

Thanks. That was extremely fast. So, just a receipt from the company and proof that the funds were wired should be sufficient?

jgdarragh2285 :

Yes a receipt is more than sufficient

Customer:

This is about the best service I've found all year. Will be getting back to you guys very soon.

Customer:

Thanks!

jgdarragh2285 :

You also need to have the accountant maintain the depreciation schedule to show 100% of the depreciated amount taken but other than that you are set!

jgdarragh2285 :

Thanks I was glad to be able to help you today!

Customer:

Thank you too.

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