Subject: Re: Writing off gear?
"Rita Ä Berkowitz"
> Randy Howard wrote:
>>> The answer to his question is *NO* he can't. If he bought this
>>> equipment for personal use, which he did, then he is stuck.
>> Incorrect. If he decides to formulate a business after the
>> initial purchase, he can transfer the assets into the company
>> and treat them as any other capital equipment expense made after
>> the formation. The IRS doesn't employer mind readers yet,
>> AFAIK. Whether a sole proprietorship, partnership or a
>> corporation, you can acquire assets prior to the creation of the
>> entity and transfer or sell them to the 'business' at a later
> Of course he can do *anything* if done correctly and properly worded, but
> is walking a fine line with this one. He really needs to get a plan
> together and figure out what he wants to do then take this to a competent
> accountant. Going by the OP's initial post of what he's trying to
> accomplish would be more of a detriment to him and possible create more
> hardship. For instance, just depreciating the equipment. Was it bought
> last month, last year, or 10-years ago? And as I said earlier, " If he
> bought the equipment to be used for his "photography" or "eBay" business
> than it is figured into the equation. Of course, he will also be able to
> back up all claims if/when he gets audited." In his case as described,
> benefits don't outweigh the risks, so I'll say stick with no.
If I were to start a photography business, I could "sell" my photographic
equipment to the business, but not at the new price....I would have to price
it at the current market's used rate....I could however, begin depreciating
it starting at that price.
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