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The Business Of Upholstery => The Business Of Upholstery => Topic started by: brmax on March 17, 2014, 07:24:54 am

Title: Minimum Expenditure
Post by: brmax on March 17, 2014, 07:24:54 am
I wanted to get some more understanding on this topic kindly if possible, mostly listen and learn some things anyway.
As I understood in the recent past a paper or document had to be issued or distributed describing a minimum amount limit effective the 1st of the year for establishing capital expense or fixed asset type purchases.
I am sure most everybody has an idea or there finance person has given an opinion on such stuff.  Now I recall in my earlier career a yearly new set of codes and such it seemed like.
I am just now wondering an amount considered in the norm for now, I do understand others have different situations that could or have to have certain structure to there rules.
If this goes anywhere thank you, if not its a thought
Title: Re: Minimum Expenditure
Post by: MinUph on March 17, 2014, 04:06:58 pm
What?
Title: Re: Minimum Expenditure
Post by: JuneC on March 17, 2014, 04:22:10 pm
Like Paul, I have absolutely no idea what you're talking about.

June
Title: Re: Minimum Expenditure
Post by: brmax on March 17, 2014, 06:48:29 pm
Sorry, I was curious if anybody used depreciation under a grand and if so do any take part in the 179 or bonus options.
that's where I meant to go, I had that rule thing in my head that I seen. way off
thanks for the rope
Title: Re: Minimum Expenditure
Post by: MinUph on March 17, 2014, 07:27:17 pm
I use to depreciate my trucks but nothing as little as a grand. I would 179 them. I think that what write that all off at once was.
Title: Re: Minimum Expenditure
Post by: gene on March 18, 2014, 07:06:15 pm
This may not be a big deal for something under $1,000.

A problem many small business owners fall into is that they take a big 179 deduction, and then they close their business, for what ever reason, before 5 or 7 years after taking the deduction. The IRS comes in and disallows the 179 deduction, gives you the standard depreciation, and then hits you with the over due taxes, penalties, and interest that you now owe.

It can also happen if that van or car is no longer used for business before the 5 or 7 year period.

A legal tax adviser is often advised.

http://www.irs.gov/publications/p946/ch02.html#en_US_2013_publink1000107452  see When Must You Recapture the Deduction.

gene

Title: Re: Minimum Expenditure
Post by: brmax on March 20, 2014, 09:22:47 pm
Thanks on that, and I will take a look there at the publication. Its agreed wise to end with the legal paid pro, and like most we look for answers everywhere initially in known groups. We all mean well answering what we feel to know and try gauging a proper or safe answer.
I understand the verification needs a pro advisor must keep strict 1st answers to, yet the difficult way they come across sometimes is sure tough on a fella.
But a good pat on the shoulder goes a long way
Good day

( a good evaluation question to use )
Having the training to give the right answer to others sometimes need the task at hand to be verified before leaving one to complete responsibly.