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Discussion in 'Starting a Lawn Care Business' started by llama, Apr 3, 2003.
and what equipment is just an expense in the year you bought it?
You set a limit for what you would directly write off versus that which you would depreciate. The rule of thumb would be equipment that you would use up it's useful life within in one year you would expense. This might be back pack blowers, line trimmers, etc. Equipment that is less than $500.00. Mowers, aerators, etc. would be depreciated.
Talk with your accountant about what limit you will set as a rule of thumb. Depending on your buying you will set a limit that is right for you. My recommendation would be to set as high of a limit that is reasonable. In my opinion you don't want to depreciate a $250 line trimmer for five years.
Also - sec 179 let's you write off I think it's $17500 in equipment (I think the limit was raised) assuming you made a profit of at least that much within the year. Obviously if your profit was $10 K you could only take $10K on the sec 179 if you had the expenses. Talk to your accountant.