SEARCH


PK Tax Services, L.L.C.
PK Tax Services, L.L.C.
  • Home
  • Services
    • 2021 Tax Season Documents for 2020
    • Year-End Tax Planning
    • FAQs on Mixed Marriages
  • Resources
  • Meet the Company
    • Videos
  • Blog
  • Contact
  • Client Portal Instructions

BLOG

Depreciable Business Equipment

8/31/2016

0 Comments

 
Picture
Wondering what you can deduct as business equipment? Purchasing equipment is simply part of running a business. Electing to immediately deduct the entire business purchase instead of capitalizing it and depreciating the asset over its useful life, which is usually several years, could provide substantial tax relief for business owners, especially those who are purchasing start-up equipment.

To qualify for the deduction, property must have been acquired for business use and by purchase. Tangible property that qualifies for the deduction includes:
•    Machinery and equipment.
•    Property contained in or attached to a building (other than structural components), such as refrigerators, gro­cery store counters, office equipment, printing presses, testing equipment and signs.
•    Gasoline storage tanks and pumps at retail service stations.
•    Livestock, including horses, cattle, hogs, sheep, goats and mink.
 
Generally, off-the-shelf computer software also qualifies for this deduction, as does qualified real property, including leasehold improvement property, restaurant property or retail improvement property.
 
Generally, you cannot claim this type of deduction if the expense is being used for:
•    Land and improvements.
•    Leased property.
•    Property used for lodging.
•    Energy property.
 
The total amount you can deduct under §179 for most property placed in service in tax years beginning in 2016 generally cannot be more than $500,000.
 
If you’d like to deduct a business equipment purchase but aren’t sure whether it qualifies for the deduction, please feel free to consult me.

0 Comments



Leave a Reply.

    Picture
    Pat Kolodziej
    ​C.P.A., M.S.T.


    Categories

    All
    IRS Tax News
    Just For Fun
    Tax Tips For Businesses
    Tax Tips For Individuals


    Archives

    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015

Pat Kolodziej, CPA, MST
Managing Member
PK Tax Services, L.L.C.

87 South McLean Boulevard, Suite A
South Elgin, IL 60177


Phone: (224) 227-6061
Cell: (847) 858-5074

Fax: (224) 227-6059
Contact Us
Client Login
Picture
Picture
Picture
Picture
Picture
Picture
BACK TO TOP

Proudly Serving: South Elgin Illinois, St. Charles Illinois, Elgin Illinois, Geneva Illinois, Batavia Illinois, Bartlett Illinois, West Chicago Illinois, Algonquin Illinois, Crystal Lake Illinois, Aurora Illinois, etc.

© 2017-2020 PK Tax Services, LLC  |  All Rights Reserved  |  Website Created by LislDesign.com

PK Tax Services, L.L.C.