Welcome to the Small Business Ideas Forum! We are a community of over 100,000 small business folks with over 163,000 posts for you to browse. We pride ourselves on being the friendliest forum you will find and we'd love to have you as a member of our community. Please take a moment and register for a free account. If you need any help, please contact Chris Logan.

Small Business Ideas Forum

Small Business Ideas Forum

A friendly place to share small business ideas and knowledge, ask questions, find help and encourage others that are involved in the small business industry. Topics include small business marketing, generating revenue and small business computing.

Go Back   Small Business Ideas Forum > Generating Revenue, Insurance, Taxes, Etc. > Small Business Finance
Register Search Today's Posts Mark Forums Read

Reply
 
Thread Tools
Old 30th December 2010, 07:07 AM   #1
thanatos05
Member
 

Join Date: Dec 2010
Location: Milwaukee, WI
Posts: 3
Default Used Equipment Tax Question

Hello all, I am new to this site and I am hoping to learn quite a bit. My question is the following. I have am a Sole Proprietor and have an Information Technology consulting firm that is based out of my home. I recently ( by popular demand) decided to expand my business into the Teaching and Repair realm of Information technology. I am going to be leasing out a building and dropping my home office to accomplish this. I have no equipment that i amortize or have written off in the past but this year I purchased quite a bit.

40 computers
40 LCD displays
Chairs and Tables

All for the teaching portion of my business expansion. I am looking to have a classroom like environment. My question (finally) is, I purchased this on Craigslist out of state (live in Wisconsin and purchased in Illinois) and did not get a receipt. I have been trying to get a receipt but the seller does not return my calls. Is there a way to write this equipment off?

Thanks for your help

Pedro

thanatos05 is offline   Reply With Quote
Register or log in to remove this ad.
Old 30th December 2010, 12:36 PM   #2
ArcSine
Member
 

Join Date: May 2009
Location: Charlotte, NC
Posts: 45
Default

The availability of the customary tax benefits (depreciation expense, Section 179 first-year expensing, etc.) are not dependent on your having a receipt.

In the unlikely event that you are challenged on the actual amount you spent on the assets, you've got your cancelled check.

If I remember correctly, used assets don't qualify for the first-year 'bonus' depreciation, but do qualify for both regular depreciation and the Sec 179 first-year expensing. On this point, though, I'm just speaking from memory, and you should verify this with a tax advisor, or through your own research.

Also, the foregoing deals solely with federal income tax law. Some states require depreciation methods that differ from federal rules (not recognizing Sec 179, e.g.), so check with the Wisconsin rules before you prepare your state return.

Happy depreciating!

__________________
...it was early and I was full of no coffee...
ArcSine is offline   Reply With Quote
Old 30th December 2010, 03:00 PM   #3
thanatos05
Member
 

Join Date: Dec 2010
Location: Milwaukee, WI
Posts: 3
Default

Thanks for the info, after some research related to your post I found the following link that is also useful.

http://www.depreciationbonus.org/pdf...0_brochure.pdf

I spoke to a Hair Salon owner who has also purchased used equipment form Craigslist on a cash basis with no receipt and he mentioned that his CPA had him look online for pricing (store that sells the same object used or re manufactured) at 2 different stores with similar pricing. They printed these prices out, and retained for records. He indicated this was valid. I am trying to identify more information to see if this is correct.

thanatos05 is offline   Reply With Quote
Old 11th January 2011, 09:18 AM   #4
phanio
VIP Contributor
 

Join Date: Feb 2009
Location: Texas
Posts: 261
Default

Quote:
Originally Posted by ArcSine View Post
The availability of the customary tax benefits (depreciation expense, Section 179 first-year expensing, etc.) are not dependent on your having a receipt.

In the unlikely event that you are challenged on the actual amount you spent on the assets, you've got your cancelled check.

If I remember correctly, used assets don't qualify for the first-year 'bonus' depreciation, but do qualify for both regular depreciation and the Sec 179 first-year expensing. On this point, though, I'm just speaking from memory, and you should verify this with a tax advisor, or through your own research.

Also, the foregoing deals solely with federal income tax law. Some states require depreciation methods that differ from federal rules (not recognizing Sec 179, e.g.), so check with the Wisconsin rules before you prepare your state return.

Happy depreciating!
Could not have said it better myself - check out: http://www.irs.gov/publications/p535...link1000144871

__________________
Business Money Today - Small Business Loans
phanio is offline   Reply With Quote
Reply   

Bookmarks


Similar Threads
Thread Thread Starter Forum Replies Last Post
Office Equipment Owner Seeking Partner - Washington DC Area chrisban35 Marketplace 2 2nd May 2011 09:26 AM
How To Offer Damage Waiver For Online Equipment Rental? ZeeKay Insurance 2 10th January 2010 02:15 PM
New Here With A Question katkat2006 New Member Introductions 7 13th March 2008 02:11 PM
302 Redirect Question PressureProsInc Search Engine Optimization 10 16th January 2008 10:07 PM
Ask me a question begin with how, I give you three ideas. bailey_sum New Member Introductions 11 2nd June 2006 08:38 AM



Thread Tools

Get Updates
RSS Feeds:
RSS Feed for Small Business Finance RSS for this Category Only: Small Business Finance

RSS Feed for Small Business Ideas Forum RSS for Entire Forum
Forum Rules


Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump


Small Business Ideas Forum


 
At Your Business - Small Business Directory
Free Business Forms - Prewritten Documents
 
Search Engine Guide
Small business guide to search marketing

 
Small Business Brief
Fetching the Best Small Business Info


Free Links - Free Advertising
Free Guide - Online Directory



Advertise your business here
Contact us for more details!


Semantic Juice
Register now to access free Quick SEO service!


Rocket Lawyer
Sign up for free 7 day trial. Boost your biz!


Buy UPC Codes
Get your products listed online!




All times are GMT -5. The time now is 10:28 AM.


Powered by vBulletin® Version 3.7.3
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
Copyright 2004 - 2018 - Privacy