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depreciation question

Discussion in 'Starting a Lawn Care Business' started by j9sheldon, Apr 19, 2004.

  1. j9sheldon

    j9sheldon LawnSite Member
    Messages: 74

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

  2. DJL

    DJL LawnSite Member
    Messages: 237

    try a book in your local library or go down to the local bookstore, they'll have them.
  3. dave80

    dave80 LawnSite Member
    Messages: 42

    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.

    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.
  4. j9sheldon

    j9sheldon LawnSite Member
    Messages: 74

    is there a website or book to tell me the usefull life stuff
  5. dishboy

    dishboy LawnSite Fanatic
    from zone 6
    Messages: 6,109

    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.
  6. Bryn

    Bryn LawnSite Member
    Messages: 209

    This would be best answered by your accountant.


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