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Old 09-22-2012, 06:21 PM
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TomCopeland TomCopeland is offline
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Join Date: Jun 2010
Location: St. Paul, Minnesota
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Default depreciation

When you depreciate items you owned before you went into business you must estimate their value at the time your business began. This is always a guess. What would a stranger pay you for this item? Take pictures of these items for your records. A couch you bought 5 years ago for $1,000 is not now worth $800. Maybe $200? It depends. If you do a reasonable guess you will be fine. I helped a provider who was audited last year and claimed that the value of her items was $34,000 when her business began. She had a spreadsheet listing several hundred items around her home. She guessed all her numbers. In the end, the IRS accepted everything.
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