Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

Can I take depreciation in the year I started my furniture…

Can I take depreciation...

Can I take depreciation in the year I started my furniture making business if I do not have a profit?

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

My son started a furniture making business this year and had about $15000 in revenue. He owned the equipment to make the furniture before he started the business. Can he depreciate the equipment and computer even though he did not have a profit? Also, his workshop is in the basement of the apartment he rents in San Francisco. The basement is only used as a workshop. Thank you for any information you can give.

Accountant's Assistant: Is there anything else the Accountant should be aware of?

I think that's it for now.

Show More
Show Less
Ask Your Own Tax Question
Answered in 3 minutes by:
3/10/2018
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,032
Experience: Adjunct Professor
Verified

Hey! I'm Carter, I'm a CPA and can help you out.

Yes he can take depreciation on the equipment in a year of loss. The only type of depreciation he cannot take without a profit is IRC 179 depreciation which allows you to 100% expense the assets. However, he can still use bonus depreciation, which is 50% of any asset placed in service before late September 2017 and 100% after that.

He can claim business use of home if it is a Schedule C business for his workshop.

Let me know if you need anything else. If not, please leave a rating. Thanks!

Ask Your Own Tax Question
Customer reply replied 1 month ago
Clarifying, he can depreciate equipment he owned prior to starting the business? Is that depreciation based on when he first bought it for personal use? The business is a sole proprietorship. What does a Schedule C business mean?

Yea, he can transfer it to the LLC and then the LLC can depreciate it at what he originally bought it for. Bonus depreciation will not be available if he put the equipment into the company prior to September 2017.

Schedule C business is another way to say sole proprietorship.

Ask Your Own Tax Question
Customer reply replied 1 month ago
He is not an LLC. Clarifying, he is transferring the assets to the sole proprietorship. What kind of documentation would he need?

Since he's not an LLC, there is no documentation requirements. He would just add them to his fixed assets and start depreciating them as soon as he started using them in the business.

Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,032
Experience: Adjunct Professor
Verified
Carter McBride and 87 other Tax Specialists are ready to help you
Ask your own question now
Customer reply replied 1 month ago
Since his workshop is about 1/2 the square footage of the apartment, can he deduct 1/2 his rent even though the business has a loss?
Customer reply replied 1 month ago
How can I get in touch with you specifically again through this website?
Was this answer helpful?
Ask Carter McBride Your Own Question
Carter McBride
Carter McBride
Carter McBride, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,032
1,032 Satisfied Customers
Experience: Adjunct Professor

Carter McBride 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
I have questions regarding filling out the schedule C. I had
Hello, I have questions regarding filling out the schedule C. I had a accident and lost my car that I bought on 11/30/2013. I bought it for $186000 in 2013. Since the car was totaled, my insurance com… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
916 satisfied customers
Someone has a small thrift store and files a schedule C for
Someone has a small thrift store and files a schedule C for it. They have $75 in merchandise that was stolen during the year from the store by customers. Where does that expense get entered on the sch… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Should i use Schedule C, or Form 2106 for my home office
Should i use Schedule C, or Form 2106 for my home office expenses? i work as a salaried employee 5 days a week out of a dedicated home office, which is for the convenience of my employer. I wish to cl… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,043 satisfied customers
What I need to file is the 1040NR and the Schedule C. Is
What I need to file is the 1040NR and the Schedule C. Is there anything else I need to file as a visitor with a J-1 visa?If I have been on the J-1 visa internship program since September 2017, am i Re… read more
Barbara
Barbara
Enrolled Agent, Paralegal
4,906 satisfied customers
2 questions please. If I transfer assets from my personal
2 questions please. If I transfer assets from my personal IRA to my LLC as a personal asset protection measure, how does the IRS not mistake this as business income? And, can those transferred IRA ass… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,124 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
Certified Public Accountant (CPA)
1,032 satisfied customers
Can I put a 1099k onto my other jobs Schedule C, if there is
Can I put a 1099k onto my other jobs Schedule C, if there is only one and it is from a part-time job?… read more
PhillipsEsq.
PhillipsEsq.
Attorney-at-Law
JD
56 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
If I have assets under a S Corp that are fully depreciated,
If I have assets under a S Corp that are fully depreciated, is there any tax impact if I sell them? For instance, I have a old tractor that might be worth 2500 in scrap metal that is fully depreciated… read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,043 satisfied customers
Single member LLC filed schedule C for the last two years
Single member LLC filed schedule C for the last two years and now wants to be an S Corporation for tax year 2017.Is 1120S simply filed with form 2553 with "INCLUDES LATE ELECTION(S) FILED PURSUANT TO … read more
Carter McBride
Carter McBride
Certified Public Accountant (CPA)
1,032 satisfied customers
A Schedule C proprietor has a SEP plan with assets valued at
A Schedule C proprietor has a SEP plan with assets valued at 800,000. It is a one participant plan covering the proprietor only.She filed Form 5500 through 2009, at which time she changed accountants.… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
916 satisfied customers
Single member LLC has filed Schedule C for prior years. As
Single member LLC has filed Schedule C for prior years. As of 01/01/2017 single member LLC is an S Corporation. My question is: a client list purchased in 2008 has been amortized on the schedule C - s… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have an LLC last year file taxes under schedule C. My
I have an LLC last year file taxes under schedule C. My question is this year 2018 I want to file taxes for the year of 2017 as an S-corp. Can I do that? I didn't pay myself a salary last year at all,… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have underreported depreciation on an asset because I have
Hi,I have underreported depreciation on an asset because I have misclassified the asset under the wrong asset class (it should be 15 year qualified restaurant property and I have it as 39 year propert… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 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
I have underreported depreciation on an asset because I have
I have underreported depreciation on an asset because I have misclassified the asset under the wrong asset class. How do I go about adjusting this on the next tax return? I do not want to amend last y… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
916 satisfied customers
Can I own assets in a LLC and not be a member of the LLC?
Can I own assets in a LLC and not be a member of the LLC? … 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, MBA, CFP, CRPS
Doctoral Degree
45 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