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Andrew Boatman
01-20-2012, 10:19 AM
I have a new tax man this year. My regular fellow had a stroke and is unable to do my taxes and I can not get with him on finding any of his past work on the taxes.

I am needing to set up an asset depreciation schedule. I have a bunch of inventory (equipment and tools) but I have no idea on depreciation. How are you all figuring these things? I am not sure where to even start.

Many thanks in advance.
Andy

Dave Hilty
01-21-2012, 03:16 PM
Let the new tax man figure that out. What you need to furnish him with is a comprehensive asset list that lists each item, original purchase price, purchase date, and the average life or number of years you expect to have it in use. Certain capital items will have normal depreciable years til they are used up. With last year's filing and the list you give him he will reconstruct a depreciation schedule for you.

Dane Gamble
01-22-2012, 06:42 PM
When you get with your new accountant, ask them about section 179. It is a tax treatment for fixed assets that we were able to take advantage of. It basically allows you to immediately write off your assets and hold the amount of write off to a future date to offset your future business profits. No limit to how long it can be held. Probably not a very good description, but it fit our needs well.

Dave Hilty
01-22-2012, 07:28 PM
Dane is right. Section 179 applies to investment in plant & equipment and it allows you to take a huge chunk of the total investment up front in the first year rather than stretching out the expense over the lifetime of the investment. Like when you put a new furnace with a cost of umpteen thousands into service, you get to expense the entire investment in 2011. (up to a $500,000.00 limit)