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Discussion in 'Starting a Lawn Care Business' started by j9sheldon, Apr 19, 2004.
is there a good website that can teach me about how to do depreciation on equipment?
try a book in your local library or go down to the local bookstore, they'll have them.
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.
is there a website or book to tell me the usefull life stuff
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.
This would be best answered by your accountant.