Do you have equipment or vehicles in your business and wonder how depreciation works Robert is an Indianapolis based chiropractor with several pieces of expensive equipment and he asks what are my options with writing this equipment off watch this video to learn more welcome to this episode of accounting and tax tips smart strategies for small business success with certified public accountant tina MO depreciation is a tax deduction that allows a taxpayer to write off the cost or basis of certain property used in business there are a few options when it comes to writing off the property but you'll want to choose the right strategy for your particular tax situation depreciating the cost of the equipment over time can make sense but it is a slower recovery of your cost the IRS publishes tables for cost recovery lives and methods for various types of equipment vehicles and even intangible assets like goodwill patents and trademarks if deducting the cost over a period of years does it make sense for you then section 179 expense deduction may be your best option this method allows you to deduct the cost of the asset in one lump sum generally up to $500,000 this can be a great deduction for a company and significantly reduce the tax liability for a corporation or its shareholders but there are income limitations that must be applied so what qualifies for section 179 expense deduction personal tangible properties such as tools machinery equipment some vehicles some single used agricultural structures off-the-shelf software and some other items qualify as well you should also know that there are certain assets that do not qualify for this expense such as rental income producing property royalty producing properties and inherited properties so the next question is is the section...
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Video instructions and help with filling out and completing Who Form 2220 Depreciated
