Rules for writing off equipment in one year?

Discussion in 'Business Operations' started by Mowing monkey., Feb 14, 2020.

  1. Mowing monkey.

    Mowing monkey. LawnSite Senior Member
    Messages: 921

    So I should probably talk to a cpa but I’m trying to avoid paying them for any more work than I have to. So I bought a backhoe thumb for $1100 a bucket for $800 with about $300 shipping to get them here and then a grapple for $2700. Can I write them off all this year?
     
  2. Matthews Lawn Care

    Matthews Lawn Care LawnSite Gold Member
    Messages: 3,007

    Yeah. You can either depreciate(spread the cost out) or take a capital expense(all in 1 year). There is limits on the amount for taking capital expense but it’s a lot(like 1 mil, might be diff this year but it’s a lot).
     
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  3. Mark Stark

    Mark Stark LawnSite Fanatic
    Messages: 6,513

    Yes, write it all off in the year that you bought it if you want to.
     
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  4. CGros31

    CGros31 LawnSite Senior Member
    Messages: 952

    Yes sir, you can write it all off in the year you bought it.
     
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  5. Manny Carlino

    Manny Carlino LawnSite Member
    from NJ
    Messages: 19

    .... Short and simple answer is YES, but you want to consult your Accountant for EVERYTHING you do even PRIOR to purchasing these things. I do NOTHING without running it past my accountant first and usually my best friend who is in the same industry and he does the same with me. You would be surprised at how another opinion/set of eyes so to speak makes on business decisions.
     
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  6. AlohaMowing

    AlohaMowing LawnSite Senior Member
    Messages: 343

    You really have not provided enough information for anyone to give an answer. While the short and simple answer may well be "yes" there are circumstances under which the answer would be "no". If you do not want to pay an expert for the answer, you should be able to find the answers to all your tax questions in an IRS publication. Business Expenses are covered by Pub 535. The most recent version of that can be found at https://www.irs.gov/pub/irs-pdf/p535.pdf, however that pub warns that there are changes to the rules for 2019 and the pub is undergoing revision.
     
  7. Manny Carlino

    Manny Carlino LawnSite Member
    from NJ
    Messages: 19

    ... Any and all equipment small or large, hand or machine operated can be written off/DEPRECIATED all at once or over time. All if not most GOOD accountants will tell you to depreciate small purchases and all hand or small power equipment in that first year. Like the ones he is talking about. Depending on your situation and profit you may want to write off/depreciate large purchases all at once as well to lower our taxable implications.

    Again speak to your ACCOUNTANT, if you run a business you SHOULD have an accountant, one that is a SMALL BUSINESS accountant! Again i speak to my accountant almost weekly or at least 2-3 times a month.
     
    Mark Oomkes likes this.
  8. SJLandscapeCT

    SJLandscapeCT LawnSite Member
    Messages: 65

    It's worth noting that it has to be purchased from an unrelated entity if I remember correctly. Buying uncle Bob's pickup truck doesn't qualify in the same way buying it from a dealership or unknown 3rd party would.
     

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