Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-11-2012, 02:03 PM
Junior Member
 
Join Date: Apr 2012
Posts: 1
tractor deduction

For year 2011 I have had a john deere tractor for a few years and have never deducted it
it is used 100% in our business its is valued at 13,000 owe 11,797 on it
intrest on the loan this last year was 1,026.22 what can I do to deduct any or all of these expenses
Next year 2012 we will have an higher income



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-13-2012, 04:22 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
“it is used 100% in our business its is valued at 13,000 owe 11,797 on it
intrest on the loan this last year was 1,026.22 what can I do to deduct any or all of these expenses “----->Most new business equipment can be either depreciated over its useful life or expensed immediately under Internal Revenue Code Section 179.When your business buys certain items of equipment, it typically gets to write them off a little at a time through depreciation. In other words, if your company spends $50,000 on a machine, it gets to write off (say) $10,000 a year for five years (these numbers are only meant to give you an example).Now, while it's true that this is better than no write off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it.In fact, if a business could write off the entire amount, they might add more equipment this year instead of waiting over the next few years. That's the whole purpose behind Section 179 - to motivate the American economy (and your business) to move in a positive direction. For most small businesses (adding total equipment, software, and vehicles totaling less than $139,000 in 2012), the entire cost can be written-off on the 2012 tax return. The IRS allows a deduction for any expense necessary for the business to operate. A comparative amount of the utilities, depreciation and loan interest is included in the expenses for busi. operation . You can deduct the cost of these purchases and the total ancillary costs associated with the purchase to get the item ready for its intended use. note that the deduction, if any, ends up on the form appropriate for the form of business organization -- Schedule C to Form 1040 if the business is a sole proprietorship, Schedule K-1 and Form 1065 if it is a partnership, and Form 1120 if it is a corporation. Special form 1120 if it is a subchapter S corporation or personal holding corporation, etc.you need to file form 4562 to depreciate your tractor.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Using Mortgage Interest Deduction instead of Student Loan Deduction MrGermyD Itemized Deductions 0 01-14-2011 11:20 PM
How is the deduction calculated in order for an employer to get a deduction? TaxGuru Alabama 0 07-13-2010 08:50 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.