Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

These questions are for a CA Tax Attorney. I have invested…

Customer Question
These questions are for...

These questions are for a CA Tax Attorney.

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

I have invested $30,000 in wine tasting room in Santa Barbara, CA

Accountant's Assistant: Is there anything else important you think the Accountant should know?

The investment was to purchased equipment and items of furniture, etc, I want to depreciate the total amount of my investment of $30,000 all in 2017 taxes

Submitted: 3 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Customer reply replied 3 months ago
How do I file? As an investor or a partner or a partnership or silent person? What forms
Answered in 7 minutes by:
1/3/2018
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 3 months ago
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,980
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi Jerry. Lane here. We spoke yesterday.

...

You can certainly do this if you OWN the property, (or the partnership can if the partnership owns, as we discussed yesterday).

...

As we discussed, the business income limit will limit the amount you can deduct. (Income from the wine tasting room itself OR other income of the partnership).

...

You can carry unused Section 179 depreciation amounts, not able to be used to reduce taxable income in 2017, to future years.

...

Here's the IRS guidance on this:

https://www.irs.gov/publications/p946#idm140672412370912

...

And heres a very readable overview:

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 3 months ago

If you own this as a sole proprietor, that would be the most straightforward. You simply file a schedule C along with your tax return. You'll see the entry for section 179 on the form on line 13:

...

Here's the form: https://www.irs.gov/pub/irs-pdf/f1040sc.pdf

Ask Your Own Tax Question
Customer reply replied 3 months ago
I do not received any profit from the business.
I only purchased the equipment in 2017
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 3 months ago

Then you cannot depreciate it

Ask Your Own Tax Question
Customer reply replied 3 months ago
Well, tell me how I can deduct my investment, how do I need to set it up in the company
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 3 months ago

Take that back ... you CAN depreciate REGULAR way (not accelerating all into the first year in business ... and take the first year's depreciation ... IF the wine tasting room was open for business in 2017. But section 179 is limited to business income, as we discussed yesterday

Ask Your Own Tax Question
Customer reply replied 3 months ago
ok
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 3 months ago

Investments are not deducted (UNLESS you can satisfy the requirements of section 179).

...

They are capitalized and then depreciated over their IRS published class life.

...

Much of what you've purchased has a five year class life

...

ANd THIS CAN (as long as you were open in 2017) be deducted against your other income on our return. (The first year's depreciation)

Ask Your Own Tax Question
Tax Professional: Lane, JD, CFP, MBA, CRPS replied 3 months ago

The depreciation would flow from the schedule C to line 12 of your personal return as a negative number, thereby reducing the other taxable income (your employment income) on the return. But again, his would be disallowed by IRS upon any audit, should they be able to prove that the business did not open it's doors in 2017.

...

(Not necessary to HAVE customers, but necessary to be able to take them)

...

Please let me know what questions you have from here:

...

Lane

I hold a law degree (J.D.), with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice to clients on three continents since 1986

Ask Your Own Tax Question
Was this answer helpful?
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 13,980
13,980 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,451 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

56 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,124 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
VA income tax return form 760, Line 16, “ Taxable Income -
VA income tax return form 760, Line 16 , “Virginia Taxable Income - Subtract Line 15 from Line 9” what are the two bubbles “DTD” and “LTD” ? Should I fill in one ?… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I am doing a partnership and personal return for a man and
I am doing a partnership and personal return for a man and his father. The man is telling me he and his father have agreed for partnership to go from being about 90% owned by father to 90% owned by hi… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
On form 1040 line4 21 other income. is this where i should
on form 1040 line4 21 other income . is this where i should enter an amount shown from my pensiopn payments form 1099R … read more
Cole Parker
Cole Parker
Principal/CPA
Bachelor\u0027s Degree
83 satisfied customers
We have a small business ( sole proprietor), my tax advisor
We have a small business ( sole proprietor), my tax advisor at HR&BLOCKs doesn't know, where to report Keogh contributions made for myself and for my employee wife. My question is, where to report it … read more
emc011075
emc011075
Tax advisor and Enrolled Agent
Bachelor\u0027s Degree
2,913 satisfied customers
If I am a sole proprietor is it better for me to be in
If I am a sole proprietor is it better for me to be in payroll? Or do an owners draw - owner equity?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,043 satisfied customers
I am a sole proprietor, in business of real estate
I am a sole proprietor, in business of real estate investments. I do hard money lending and investing limited partnerships. Therefore I file schedule C to report the interest on loans even though they… read more
Fred Rook
Fred Rook
Corporate Controller
BSBA
125 satisfied customers
For the form schedule C; line 27b. is that the amount i put
hello, for the form schedule C; line 27b. is that the amount i put for the excess of start up costs that im not allowed to claim in the first year? Therefore, the remaining amount i have to amortize/d… read more
Carter McBride
Carter McBride
LLM
957 satisfied customers
Form 886-A Schedule C-5 is asking for a log of business
Form 886-A Schedule C-5 is asking for a log of business mileage which i can provide, but it also asks for two receipts/documents showing mileage at the beginning and at the end of the year for each ve… read more
Lane
Lane
JD, CFP, MBA, CRPS
13,980 satisfied customers
Can a married LLC Partnership file schedule C on their 1040
Can a married LLC Partnership file schedule C on their 1040 with their W2 income? And if so if they fie separate sch C how do they go about it? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,906 satisfied customers
This is in regards to a partnership tax return Form 1065 and
This is in regards ***** ***** partnership tax return Form 1065 and potentially amending it. The only reason for the amendment would be the distribution information on the K-1s was incorrect. Nothing … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
If I move my rental properties from my personal return to a
If I move my rental properties from my personal return to a 1065 partnership, how is the basis calculated?… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,043 satisfied customers
I am been audited by the irs on my schedule C. For vehicle
hello, I am been audited by the irs on my schedule C … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Are funeral expenses deductible on IRS personal return? My
Are funeral expenses deductible on IRS personal return? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Taxpayer amended 2015 tax return to report schedule C
Taxpayer amended 2015 tax return to report schedule C income. Note schedule C was never file on original return. Can taxpayer claim Sec 179 deduction on the amended return for 2015… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,043 satisfied customers
I'm confused when income should be on a schedule C and/or
I'm confused when income should be on a schedule C and/or reported on Schedule SE. I'm a musician that gets 1099 for gigs and teaching in addition to W-2s. I was told that expenses used on Schedule C … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,043 satisfied customers
With the new tax laws, if I'm a sole proprietor, would it
With the new tax laws, if I'm a sole proprietor, would it make sense for me to become an LLC? … read more
Lane
Lane
JD, CFP, MBA, CRPS
13,980 satisfied customers
A law firm (which is a Schedule C filer) has gross income of
A law firm (which is a Schedule C filer) has gross income of 1,000,000 & Net Income 0f 280,000. In the tax reform just passed, there is a 20% deduction for law firms that have income less than 315,000… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,043 satisfied customers
Small schedule c business donates fully depreciated
small schedule c business donates fully depreciated furniture to charity. They've been told that the FMV is $1,000. What is the deduction for contributed property? … read more
Lane
Lane
JD, CFP, MBA, CRPS
13,980 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x