View Full Version : help on depreciation for tax purposes

04-02-2009, 01:23 PM
I am currently doing my taxes. I have a small business. One exmark 46 in (08 model). I have a Stihl comercial weedeater (07 mod) several trimmers and hedge tools. How can I figure what they are worth and how much I can count off for depreciation? Thank you so much for your help

04-02-2009, 01:29 PM
If I remember right, you figure what the useful life is of the equipment and divide the price to get your write off annually. That's kind of a guess. I can't remember what the accountant told me.

Ruben Rocha
04-02-2009, 01:57 PM
best thing is call your accountant.
There several schedules today. and it depends on the year and month the equipment was purchased.
Here is the irs publication http://www.irs.gov/publications/p946/index.html

04-02-2009, 02:33 PM
Equipment has a half year convention meaning you take 6 months the year of the purchase and 6 months final year of life. The depreciation table are automatically set up to calculate this convention. i.e seven year equipment is 20% the first year. You simply multiple the cost by the percentage rate in the table. Landscape equipment has a 7 year life. The amount you depreciate is essentially your cost, not the value of the equipment. Bear in mind you can also take section 179 expense the year pf purchase rather than depreciation over the IRS recovery period.

04-19-2009, 06:34 PM
I believe 2009 is the last year for the Section 179 expense deduction_run the #'s to see if it would be beneficial for you to use the 179 as I believe full deduction can be taken

05-11-2009, 09:38 PM
There are three main methods of depreciation, straight-line being by far the most widely used. To calculate your straight-line depreciation expense for this year, take the purchase price of the item, subtract the residual value (value upon disposal after its useful life), and divide by its useful life in years. The residual value and useful life are pretty arbitrary amounts, but your equipment probably has a 5-7 year useful life, and maybe the mower is worth $1000 after its useful life.

The purpose of depreciating equipment is to spread out its initial cost over its useful life, so depreciating something is probably only worth it if it cost a significant sum, maybe $1000-2000 or higher. For smaller equipment purchases it would most likely be more benificial to expense it the year it was purchased with a section 179.

TurboTax does it all for you but it's always best to talk to an accountant.

Little late but now you know.

05-11-2009, 10:55 PM
We just take the one time 50% deduction on our equipment in the tax year we purchase it in. That seems to be the easiest way for us although we prob. leave $$$ on the table doing it that way.

05-11-2009, 11:31 PM
Just claim the exmark, NOT the hand tools, there NOt worth it....

Claim them as a hole and NOT a Depreciation value.....

Big C
05-12-2009, 12:16 AM
Just claim the exmark, NOT the hand tools, there NOt worth it....

Claim them as a hole and NOT a Depreciation value.....

That's what my accountant told me to do just claim the whole thing my first year.....to much bullsh!t to remember from year to year.