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If I am a sole proprietor that starts a business using

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If I am a...

If I am a sole proprietor that starts a business using personal equipment assets in my business. Are there any ways to establish those assets as depreciable assets and take the maximum allowable write-off for their value.

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Submitted: 10 months ago.Category: Tax
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10/21/2017
Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 10 months ago
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,778
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
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Welcome to JustAnswer! My name is ***** ***** I will be able to assist you today.

Yes, the year you place an asset in service you may have the option of being able to depreciate the property in full under section 179 deduction. Section 179 does have certain guidelines and limits depending on the type of property you have placed in business and income generated by your business.

Use Form 4562 to figure your deduction for depreciation and amortization. Attach Form 4562 to your tax return for the current tax year if you are claiming any of the following items.

  • A section 179 deduction for the current year or a section 179 carryover from a prior year.

  • Depreciation for property placed in service during the current year.

  • Depreciation on any vehicle or other listed property, regardless of when it was placed in service.

  • A deduction for any vehicle if the deduction is reported on a form other than Schedule C (Form 1040) or Schedule C-EZ (Form 1040).

  • Amortization of costs if the current year is the first year of the amortization period.

  • Depreciation or amortization on any asset on a corporate income tax return (other than Form 1120S, U.S. Income Tax Return for an S Corporation) regardless of when it was placed in service.

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Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 10 months ago

I would be happy to answer any follow up question you may have.

I have placed a link below to IRS.Gov Publication 946 which covers Section 179 deprecation. Please review the link and if you do have any questions let me know.

Deducting depreciation is an in depth topic and I suggest that if you are not familiar with the topic to hire an experienced licensed IRS enrolled agent or accountant to assist you.

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Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 10 months ago

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Tax Professional: Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional replied 10 months ago

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