Tax question | TigerDroppings.com

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Ford Frenzy
New Orleans Saints Fan
337 posts
Member since Aug 2010
5285 posts

Tax question


What is the proper accounting for buying a piece of equipment for use in a sole proprietorship (schedule C) electing 179 or bonus depreciation the first year and the next year taking out the equipment for personal use?

To me it sounds like that is not a taxable event and that you would just carry zero basis with the equipment personally and have to recapture depreciation if later sold.







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Ford Frenzy
New Orleans Saints Fan
337 posts
Member since Aug 2010
5285 posts

re: Tax question


Bump





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Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
14400 posts

re: Tax question


When business use of an asset drops below 50% you are supposed to recapture any depreciation in excess of straight line depreciation.





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Ford Frenzy
New Orleans Saints Fan
337 posts
Member since Aug 2010
5285 posts

re: Tax question


Thank you, so if you didn't take bonus and had it in the business for the duration of what would have been straight line, you can take it out as a non taxable transaction with zero basis?





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