Depreciate Instead of Expensing New Equipment

Discussion in 'Business Operations' started by statman, Apr 9, 2008.

  1. statman

    statman LawnSite Senior Member
    Posts: 271

    I bought a new trailer, walk-behind mower, weedwacker, and chainsaw last year. Can I depreciate all of it or do I have to expense the smaller stuff? Is there a dollar limit as to how small of an amount you can depreciate?
     
  2. Alluring Lawns

    Alluring Lawns LawnSite Member
    Posts: 82

    depending on your income in 2007, I would depreciate everything so you have a deduction for years to come. If you are showing a profit in 07 and getting hit with self employment tax, then do rapid depreciation in the form of a section 179 to get the total cost deducted in the current year.
     
  3. mjlcare

    mjlcare LawnSite Member
    Posts: 177

    anything over $75 you depreciate or you can take full value or you can take a percentage of the value, and just make it so you pay as little as you can and also so you can depre it over the next few years
     
  4. SDNCLAWNCARE

    SDNCLAWNCARE LawnSite Member
    Posts: 232

    I when I did my taxes this year, I spread my depreciation across three years. This will help lower my taxes if I make a bigger profit this year.
     
  5. Two Seasons

    Two Seasons LawnSite Senior Member
    Posts: 791

    TurboTax and depreciate all of it. One caveat: biz taxes for 2007 should have been filed by March 15, 2008!
     
  6. ALarsh

    ALarsh LawnSite Silver Member
    from Midwest
    Posts: 2,412

    Where did you get March from? It's April...
     
  7. Frue

    Frue LawnSite Bronze Member
    Posts: 1,472

    turbo tax for a business this is a nightmare waiting to happen. Please get a cpa.
     
  8. YardPro

    YardPro LawnSite Gold Member
    Posts: 3,563

    ditto on the cpa.. worth EVERY PENNY
     
  9. Very true IF you are a corporation.
     
  10. Two Seasons

    Two Seasons LawnSite Senior Member
    Posts: 791

    "Disaster waiting to happen" Oh please!

    S corp guys and I've been doing my business taxes since 2002 and personal taxes since I was 18, including my military service.:usflag:
     

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