How Much Does Furniture Depreciate In Less Than 1 Yr?

[legomom922]

I *think* I read somewhere maybe even in one of Toms books, that if you buy something and you start using it for business within 1 yr, to use the actual cost of the item? is this true?

I am in the process of depreciating my furniture, however the items were bought brand new in Dec 2009, and I went into business June 2010, so do I use the actual cost? or do I have to depreciate itat a lower cost? I mean I spent $1500 on my dining room set, so I cant imagine it would be worth much less 6 months later..I also have a entertainment center that was 9 months old when I went into business and that cost me $800. Now could I put it ob CL for $800? Hek no, people are always looking for cheap deals..however I wouldnt want to sell it $300 either..

[TomCopeland]

If you bought something before your business began such as furniture you must depreciate it based on its fair market value at the time you first used it in your business. Nine months later the furniture is worth less than what you paid for it. How much less? Maybe 10-20% less. It's an estimate. As long as you are reasonable with your guess you will be fine. Don't say it's worth more than 90% of its value after 9 months.