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  #1  
Old 04-19-2004, 02:54 PM
j9sheldon j9sheldon is offline
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Join Date: Jun 2002
Location: Austin, tx
Posts: 74
depreciation question

is there a good website that can teach me about how to do depreciation on equipment?

thanks
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  #2  
Old 04-20-2004, 12:18 PM
DJL DJL is offline
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Join Date: Dec 2003
Location: Central New Jersey
Posts: 237
try a book in your local library or go down to the local bookstore, they'll have them.
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  #3  
Old 04-20-2004, 01:50 PM
dave80 dave80 is offline
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Join Date: May 2003
Location: Central PA
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Depreciation can be a big PITA. Most people use straight-line for their books, but when you figure your tax returns you have to use what is called MACRS depreciation.

Straight-line is easy. Just take the useful life of the equipment and depreciate over that time.

Example:
You buy a truck for $10,000 with a 5 yr useful life. Each year, your depreciation is $2,000 (using straight-line).

With MACRS, you have to deduct a certain percentage each year. The rates are as follows:

YR 1 - 20%
YR 2 - 32
3 - 19.2
4 - 11.52
5 - 11.52
6 - 5.76

At least those rates are for the 5 year asset category.

HTH but you really might want to talk to an accountant.
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  #4  
Old 04-20-2004, 09:22 PM
j9sheldon j9sheldon is offline
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Join Date: Jun 2002
Location: Austin, tx
Posts: 74
is there a website or book to tell me the usefull life stuff
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  #5  
Old 04-21-2004, 01:43 AM
dishboy dishboy is offline
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Join Date: Dec 2003
Location: zone 6
Posts: 3,346
Tax guide for small business, a IRS publication.

You can deduct your equiptment 100% in the year you put in service using section 179 depreciation. Their are restrictions on vehicles though.
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  #6  
Old 04-21-2004, 09:38 PM
Bryn Bryn is offline
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Join Date: Jan 2004
Location: Middle TN
Posts: 200
This would be best answered by your accountant.

Bryn
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