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khutch
12-14-2011, 10:22 AM
Bought a $2700 aerator this year. How to you spread out the depreciation? When I started as a S-Corp years ago my CPA did everything. Now life is easier and I just plug in the numbers. I know I could take it as a Section 179, but this was not the greatest year and I don't need that big deduction. So curious how you spread it out, is it 3, 5 or 7 year property and is it equal deductions each year?

Kelly's Landscaping
12-14-2011, 10:41 AM
You can carry over the unused deductions from year to year. I have about 140k worth of them atm.

KeystoneLawn&Landscaping
12-14-2011, 10:44 AM
I would take it all this year. I only carry what is required by law. IMO, spreading it over years just cost time, time is money spent when it could have done years ago. That's just me.

ralph02813
12-15-2011, 08:04 AM
Bought a $2700 aerator this year. How to you spread out the depreciation? When I started as a S-Corp years ago my CPA did everything. Now life is easier and I just plug in the numbers. I know I could take it as a Section 179, but this was not the greatest year and I don't need that big deduction. So curious how you spread it out, is it 3, 5 or 7 year property and is it equal deductions each year?



http://www.irs.gov/pub/irs-pdf/p946.pdf

Smallaxe
12-15-2011, 11:39 PM
As a tax guy I would suggest that unless you need the tax deduction this year, it is best to take over a period of time... 5 year property for that type of equipment is usually a sound decision...

By the sound of it, you really don't want to waste the deduction on this year, since it wasn't a particularily profitable year...

These depreciation amounts do add up to benefits as the years go by...