Chris Campbell on fri 25 feb 00
To all -
The questions of deductions and allowances gets extremely complicated.
Sometimes the yearly deduction allowed for a large expenditure can be as
little as $50 when you have to take it over 39 years. Sometimes you can
recover it quicker and other circumstances prohibit it.
If you are truly running your business in a business like manner, you
should be getting tax advice as well as pottery advice. Places like H & R
Block can give you solid help at a very low cost and it is worth it to handle
your taxes in the most advantageous way for you.
Please do not take any tax advice given to another party as appropriate
for you.
Chris - in Carolina - just reaching for my belt to put on with my suspenders
Cheryl L Litman on sat 26 feb 00
Based on personal experience, admittedly in 1 H&R Block office, I would
NEVER recommend their services. They hire far too many inexperienced
people. Find a private accountant and make sure they know your type of
business.
Cheryl Litman ---------- Somerset, NJ --------- email:
cheryllitman@juno.com
**How then do we span the distance between what we are and what we want
to be?***
On Fri, 25 Feb 2000 17:25:08 EST Chris Campbell
writes:
> ----------------------------Original
> message----------------------------
> To all -
>
> The questions of deductions and allowances gets extremely
> complicated.
> Sometimes the yearly deduction allowed for a large expenditure can
> be as
> little as $50 when you have to take it over 39 years. Sometimes you
> can
> recover it quicker and other circumstances prohibit it.
>
> If you are truly running your business in a business like
> manner, you
> should be getting tax advice as well as pottery advice. Places like
> H & R
> Block can give you solid help at a very low cost and it is worth it
> to handle
> your taxes in the most advantageous way for you.
>
> Please do not take any tax advice given to another party as
> appropriate
> for you.
>
> Chris - in Carolina - just reaching for my belt to put on with my
> suspenders
Cheryl Litman ---------- Somerset, NJ --------- email:
cheryllitman@juno.com
**How then do we span the distance between what we are and what we want
to be?***
Olivia T Cavy on mon 28 feb 00
Hi Chris and others,
You're absolutely right that the yearly write off usually is small
compared to the total cost of the "improvement", particularly during the
first when the asset was placed in service towards the end of the year
and you get to depreciate only your pro-rata share of the annual
depreciation, even though all the money spent on the improvement was paid
out.
That's why you would want to set a capitalization policy that allows you
to expense smaller expenditures. With a smaller improvement, it makes no
sense to depreciate it over 39 years in terms of record keeping. Yes, you
could capitalize it, and no IRS agent will disallow your depreciation
expense over the 39 years, but no agent would disallow a reasonable write
off. However, at some dollar amount you WILL need to capitalize a
capitalizable expenditure, and this is where there's a judgment call. It
will depend on the size of the business (the amount of sales) and the
"official capitalization policy" of the business. The policy is just
whatever the business decides that seems to make sense at the time.
Again, you might want someone with tax experience to help you. And you'll
probably find variations in how aggressive your capitalization policy
will be, depending on the individual tax preparer.
You're right that you can never go wrong being conservative and
depreciating everything, but most taxpayers would prefer to get a faster
write off.
Bonnie
Bonnie Hellman, CPA in PA & CO
On Fri, 25 Feb 2000 17:25:08 EST Chris Campbell
writes:
> ----------------------------Original
> message----------------------------
> To all -
>
> The questions of deductions and allowances gets extremely
> complicated.
> Sometimes the yearly deduction allowed for a large expenditure can
> be as
> little as $50 when you have to take it over 39 years. Sometimes you
> can
> recover it quicker and other circumstances prohibit it.
>
> If you are truly running your business in a business like
> manner, you
> should be getting tax advice as well as pottery advice. Places like
> H & R
> Block can give you solid help at a very low cost and it is worth it
> to handle
> your taxes in the most advantageous way for you.
>
> Please do not take any tax advice given to another party as
> appropriate
> for you.
>
> Chris - in Carolina - just reaching for my belt to put on with my
> suspenders
Bonnie D. Hellman, Pittsburgh, PA
PA work email: oliviatcavy@juno.com
PA home email: mou10man@sgi.net (that's the number 10 in the middle of
the letters)
________________________________________________________________
YOU'RE PAYING TOO MUCH FOR THE INTERNET!
Juno now offers FREE Internet Access!
Try it today - there's no risk! For your FREE software, visit:
http://dl.www.juno.com/get/tagj.
| |
|
