Thread: Depreciation?
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Old 01-07-2011, 08:12 AM
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TomCopeland TomCopeland is offline
Business Author/Trainer
Join Date: Jun 2010
Location: St. Paul, Minnesota
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Default Fence

Fence - When depreciating an item you purchase for your business there are usually two different methods you can use to depreciate them. The first is called a straight line method. This means that you will get the same amount of depreciation deduction each year (over 15 years in the case of a fence). The second is called an accelerated method. This means that you get a large depreciation deduction in the first year and the amount then steadily declines over the life of the depreciation (again 15 years for a fence).

In general, it's best to use the accelerated method because it gets you deductions faster. You won't have to worry about paying anything back if you go out of business before the end of 15 years.

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Car - don't worry about claiming too many expenses in your first year that create a loss. This is typical. Buying a $6000 car doesn't necessary get you that much in deductions unless you used it more than 50% in your business.
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