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It's that time of the year again!

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It's that time of the year again!

Old 12-15-11, 11:38 PM
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It's that time of the year again!

Time to look for some good business deductions, that is. What are some good things to buy for the business that are also fun to own?

I've thought about a nice 1080p projector for business presentations, but I won't be able to make full use of that for a while so it's probably better to wait.

It's too late to lease a car for this year and I don't really want a 3+ ton utility vehicle (a hell of a writeoff if you do want one though, if they're still allowing that).

A forklift? Is that fun to drive around? I don't know where I'd park it...

What are some good ideas for end of the year business deductions?
Old 12-15-11, 11:54 PM
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Re: It's that time of the year again!

real doll

/end thread
Old 12-16-11, 12:02 AM
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Re: It's that time of the year again!

Full sized pickups are still the steal. 100% depreciation in the year you buy it. That goes away next year if not extended. Think about that....suppose my rentals showed a $50k profit this year and I had need of a truck. My current one is a 2006 and the depreciation was for 5 years. I could pay around $15,000 in income taxes on that money, or I could buy a $50,000 truck and owe nothing.

Damn, may have to look into that. It would still be stupid for me since my current "garbage" truck has less than 20,000 miles on it. Though being a V-10, you couldn't afford to put too many on it.
Old 12-16-11, 12:04 AM
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Re: It's that time of the year again!

Yeah, I've kind of been thinking of buying a behemoth vehicle and just parking it, then selling it essentially unused in a while. Maybe rent it out? You can't beat 100% depreciation in one year.
Old 12-16-11, 12:06 AM
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Re: It's that time of the year again!

However...I could get rid of my old truck and my car and have the company buy a new truck and pay all the expenses for it. That would do some interesting things. Hmmmmmm. Stupid X with his ideas.
Old 12-16-11, 12:21 AM
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Re: It's that time of the year again!

Originally Posted by kvrdave View Post
Stupid X with his ideas.
Funny you should say that...

I came upon what appeared to be a real gift in the tax law for people who worked out of their home and hadn't depreciated it for a number of years.

My accountant had no idea, went to a higher-powered CPA who had no idea, got referred to a professor of tax law who had never heard of it but was very interested. He was also willing to have his staff research it for many thousands of dollars and give me an opinion, but didn't want to rape me (I appreciated that.) He suggested I either discuss it with the IRS guy who wrote Revenue Procs 2004-11 and 2007-16 or maybe just go for it, in which case I'd find out what the IRS could figure out about it. Actually that last part was my suggestion.

I literally could become the expert in this one part of the tax law.
Old 12-16-11, 12:29 AM
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Re: It's that time of the year again!

Some nice chairs/couches for watching the presentations.
Old 12-16-11, 12:34 AM
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Re: It's that time of the year again!

Originally Posted by Ranger View Post
Some nice chairs/couches for watching the presentations.
Good idea. I'm just kind of cramped in my current office right now and looking to build out a new one in the house in a year or two. That's when the real fun will begin and I can do all that kind of stuff.
Old 12-16-11, 12:35 AM
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Re: It's that time of the year again!

Wow, the attitudes in this thread certainly go against what you see from the same posters in the politics forum.
Old 12-16-11, 12:45 AM
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Re: It's that time of the year again!

Riduculing tax laws and discussing how they are exploited is different than what you see in Politics?

What do you think could discourage that... Maybe lower tax rates? Maybe eliminate tax laws that encourage a particular type of spending, like buying vehicles over 6000 pounds?
Old 12-16-11, 04:27 AM
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Re: It's that time of the year again!

well you certainly aren't being raped by taxes.
Old 12-16-11, 04:54 AM
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Re: It's that time of the year again!

I thought this was going to be about Christmas. Taxes, ugh!
Old 12-16-11, 05:46 AM
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Re: It's that time of the year again!

Originally Posted by X View Post
Riduculing tax laws and discussing how they are exploited is different than what you see in Politics?

What do you think could discourage that... Maybe lower tax rates? Maybe eliminate tax laws that encourage a particular type of spending, like buying vehicles over 6000 pounds?
That or perhaps if Congress didn't create cushy loopholes for themselves and their buds, perhaps the rest of us wouldn't try to lern and exploit them.

The question should be directed to those that write the millions of pages of loopholes, exceptions, and complexities, not those who attempt best use of the written code to minimize their tax obligation.
Old 12-16-11, 06:15 AM
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Re: It's that time of the year again!

Call the IRS guy. It could be fun.

Where I work, we called the guy at the FDA who wrote most of 21 CFR Part 11, back when it new and we had trouble figuring it out. He turned out to be a nice guy who enjoyed talking to someone outside the bureaucracy.
Old 12-16-11, 07:42 AM
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Re: It's that time of the year again!

macbook pro
Old 12-16-11, 10:00 AM
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Re: It's that time of the year again!

You need you one of these.

Old 12-16-11, 10:25 AM
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Re: It's that time of the year again!

I've needed a new office chair for a few years now. I think I'll wait one more year.

I also need a new floor mat for the chair. I keep buying the cheap ones and they don't last. I can't bring myself to pay the absurd prices of the heftier ones, even though I know it's probably a long-term savings. Ugh.

I think one of my monitors may die on me soon so it might be good to replace that before the end of the year, I guess. Or not. Just as well to do it next year.

I'm no fun in this thread.
Old 12-16-11, 11:15 AM
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Re: It's that time of the year again!

Originally Posted by Superboy View Post
well you certainly aren't being raped by taxes.
Nope, we're spending $50,000 to save $15,000. Much better.

The real trick, I think, is to buy a $50,000 truck with nothing down, get the $50,000 deduction today and pay for it over time while deducting the interest as well. If the purchase creates a loss, you can carry over those losses for future years of gains.

We certainly don't need a tax overhaul though. This all seems just fine.....just fine.
Old 12-16-11, 11:53 AM
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Re: It's that time of the year again!

Originally Posted by X View Post
I came upon what appeared to be a real gift in the tax law for people who worked out of their home and hadn't depreciated it for a number of years.
Are you saying it my be possible to deduct the depreciation on your home if you work at home? Wow. That's crazy. If that were possible I think everybody would work from home.

I've got a question for you tax masters? I used to be self employed and normally claimed a number of deductions for millage driven, lunch meetings, etc.

Now I am a full time sallaried employee. How easy is it to claim business deductions when you're on sallary. I genuinely do need an iPad because one of our biggest vendors has an app that's only available on a tablet, not on the internet. Can I deduct the full price of an iPad?
Old 12-16-11, 11:59 AM
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Re: It's that time of the year again!

Originally Posted by Mabuse View Post
Are you saying it my be possible to deduct the depreciation on your home if you work at home? Wow. That's crazy. If that were possible I think everybody would work from home.
Absolutely.

You can depreciate the value of the building (not land) up to the percentage of the building that is being used solely for business. It's over a long period of time (29.5 years?) so it's not that big a deduction. You have to recapture that depreciation when you sell the building though, so it's not exactly free money.

My issue is taking depreciation from the past decade that hasn't been claimed yet. That's significant when you can take it in one year.
Old 12-16-11, 12:29 PM
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Re: It's that time of the year again!

Originally Posted by Mabuse View Post
Now I am a full time sallaried employee. How easy is it to claim business deductions when you're on sallary.
The business needs to pay for it, and the business will take the deduction.

If you genuinely need an ipad to do your job, your employer should provide one.
Old 12-16-11, 03:11 PM
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Re: It's that time of the year again!

Originally Posted by X View Post
Absolutely.

You can depreciate the value of the building (not land) up to the percentage of the building that is being used solely for business. It's over a long period of time (29.5 years?) so it's not that big a deduction. You have to recapture that depreciation when you sell the building though, so it's not exactly free money.

My issue is taking depreciation from the past decade that hasn't been claimed yet. That's significant when you can take it in one year.
27.5 years for residential and 45 years for commercial. I would bet they consider the portion of a home used for business to be on the residential schedule. But you'd also want to keep in mind that if you intend to sell at some point, you may well have to pay capital gains on that portion that is home office. Assuming income tax and capital gains tax stay roughly the same, you'd still be ahead, obviously.
Old 12-16-11, 09:54 PM
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Re: It's that time of the year again!

I think I heard 25% max for the tax on the recapture of the depreciation. If it's capital gains, so much the better. Even 25% sometime in the future is better than being taxed now.

I wouldn't really bother with the depreciation thing (although all of it from the past in one year is quite attractive), but I've heard the IRS just assumes you've been taking depreciation all along if you do business deductions for use of your home. They're evidently too lazy to check. So if you're going to be charged for the depreciation you did or didn't take, you might as well take it. And that's why the tax law added that little "gift" of being able to take the depreciation since you were going to be charged for it anyway.
Old 12-17-11, 12:38 AM
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Re: It's that time of the year again!

I know they assume you've taken it on investment property and whether you have or haven't you pay capital gains as though you did, so that is entirely possible.
Old 12-17-11, 01:38 AM
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Re: It's that time of the year again!

Originally Posted by Nick Danger View Post
Call the IRS guy. It could be fun.
Seriously? don't bother calling the IRS unless you're the one who fucked up. If there's a disagreement and you think they're wrong, most of the time it's going to go to tax court.

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