Moonglow
Diamond Member
Setting aside the fact that you don't know your ass from a hot rock and wouldn't know the ins and outs of tax law if your were beat over the head, I'll answer the question for the lurkers out there.
Capital equipment isn't written off 100% at point of purchase because it's considered an asset (depreciation is an assumed liability)....Even though through use it can be deemed worth less than the purchase price, it still has value as a serviceable and potentially salable item.
You don't get to deduct assets from your taxes.
Exactly.
In fact depreciation schedules are the bane of a small business.
If you really want to help small business get rid of the ridiculously long depreciation schedules and let businesses write off 100% of their expenditures on capital improvements in the year they are made.
This is exactly what I've been saying.
do you use the 5 year schedual?