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Old 09-17-2003, 06:27 PM
SeaJay SeaJay is offline
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save your receipt...

Most people start a lawn business before they register or get LLC. Most people buy equipment befor they are LLC or other inc.

If you purchase equipment before you are registered, LLC, SBA, etc. can you still use those purchases as a tax deduction?
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Old 09-17-2003, 07:31 PM
June Bugs Mowing June Bugs Mowing is offline
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In Maryland where we are we had to buy the equipment while in business.We had a mower when we started and we could not claim it on the taxes.
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Old 09-17-2003, 07:37 PM
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Team Gopher Team Gopher is offline
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I can't find a site with this exact situation but here are two sites that may help with further reading.

Writing Off Assets in the First Year

Writing Off Assets in the First Year Site 2.
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Old 09-17-2003, 08:43 PM
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Navig8r Navig8r is offline
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My accountant told me the write-offs are applicable when the equipment goes into service........ Bought a Lazer last year, biz started this year.... write-off this year... got it???

Oh yeah..... don't guess which one of us is right...... go see an accountant.
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Old 09-18-2003, 11:33 PM
bruces bruces is offline
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Re: save your receipt...

Quote:
Originally posted by SeaJay
Most people start a lawn business before they register or get LLC. Most people buy equipment befor they are LLC or other inc.

If you purchase equipment before you are registered, LLC, SBA, etc. can you still use those purchases as a tax deduction?
Yes!

If you form a one person LLC you are still filing as an individual.

Registration doesn't make any difference. If you are operating a business, you are operating a business and those expenses are deductible or depreciable.

If you buy equipment and then incorporate, different procedures apply, depending on whether you transfer the equipment to the corporation, lease it to the corporation, etc.

In this instance, check with your tax advisor.
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Old 09-18-2003, 11:59 PM
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work_it work_it is offline
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The worst part is the tax laws change quarterly. Guess it all depends on Congress and how they're going to fund their next pay raise. Check with your CPA.
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Old 09-19-2003, 03:02 AM
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JimLewis JimLewis is offline
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I think Navig8r gave you the best advice.

But I'll add this; Sometimes it's best NOT to let your new company write-off the expense of new equipment. Instead, you can use it as a write-off of your own (as a sole-prop.) and now that you've changed business entities, you can rent or lease the equipment to your company. It saves a ton in taxes and is a good way to earn income from your company!

Again, see a good CPA for more on all of this.
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