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Most people start a lawn business before they register or get LLC. Most people buy equipment befor they are LLC or other inc.

If you purchase equipment before you are registered, LLC, SBA, etc. can you still use those purchases as a tax deduction?
 

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My accountant told me the write-offs are applicable when the equipment goes into service........ Bought a Lazer last year, biz started this year.... write-off this year... got it???

Oh yeah..... don't guess which one of us is right...... go see an accountant.
 

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Originally posted by SeaJay
Most people start a lawn business before they register or get LLC. Most people buy equipment befor they are LLC or other inc.

If you purchase equipment before you are registered, LLC, SBA, etc. can you still use those purchases as a tax deduction?
Yes!

If you form a one person LLC you are still filing as an individual.

Registration doesn't make any difference. If you are operating a business, you are operating a business and those expenses are deductible or depreciable.

If you buy equipment and then incorporate, different procedures apply, depending on whether you transfer the equipment to the corporation, lease it to the corporation, etc.

In this instance, check with your tax advisor.
 

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I think Navig8r gave you the best advice.

But I'll add this; Sometimes it's best NOT to let your new company write-off the expense of new equipment. Instead, you can use it as a write-off of your own (as a sole-prop.) and now that you've changed business entities, you can rent or lease the equipment to your company. It saves a ton in taxes and is a good way to earn income from your company!

Again, see a good CPA for more on all of this.
 
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