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Old 11-19-2012, 01:41 AM
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ksss ksss is offline
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Depreciating a piece of equipment in one year but paying on it for multiple years is a receipe for a tax nightmare.
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Old 11-19-2012, 06:21 AM
Duekster Duekster is offline
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Originally Posted by britsteroni View Post
You can still use the straight line method of depreciation and claim mileage. And I'm not sure what you mean with the 22 cents. The mileage rate after June 30, 2011 is 55.5 cents per mile. There are a few other rules to claiming both straight line depreciation and mileage. See IRS publication below for more info.
I was not aware you could use a straight line and take mileage. I have typically used actual expenses plus depreciation.

Mileage will definately be more attractive but then you have that recapture aspect if / when you sell.


For automobiles a taxpayer uses for business purposes, the portion of the business standard mileage rate treated as depreciation is 21 cents per mile for 2008 and 2009, 23 cents per mile for 2010, 22 cents per mile for 2011, and 23 cents per mile for 2012. See section 4.04 of Rev. Proc. 2010-51.

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Old 11-20-2012, 11:50 AM
zabmasonry zabmasonry is offline
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Your accountant likely wants you to personally own the equipment so that it is not an asset that is subject to the companies liabilities. Since you actually own the asset, if anything happens to the business then you retain the value of the asset instead of losing it with the business.
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