• Thankful For Your Family…. Business?
    Landscaping businesses are often family endeavors. While this can combine the best of both worlds (personal and professional), it isn’t always smooth sailing. Click here to read more.

depreciation question

DJL

LawnSite Member
try a book in your local library or go down to the local bookstore, they'll have them.
 

dave80

LawnSite Member
Location
Central PA
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.
 

dishboy

LawnSite Fanatic
Location
zone 6
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.
 
Top