For items you can depreciate that cost under $100 are you putting them on the schedule c or listing them on form 4562, I see in Tom's book it says you can claim the full expense of the items under $100 but i am unclear where to record the items.
an example is the laminator I bought for $27, it is 100% business use, so should I just put it on the schedule c as $27 or should I list it on form 4562 as a 5 year 200% item with 50% bonus because I purchased it new in 2012?
Unregistered 10:26 AM 03-10-2013
If it is under $100 we just put in on schedule C. Over $100 has to be depreciated. I am still unclear though on this if he item is say, $99, but with tax is $105, do we have to depreciate or can we just do in the one year???
frugalmama4 12:41 PM 03-10-2013
Originally Posted by EAP:
For items you can depreciate that cost under $100 are you putting them on the schedule c or listing them on form 4562, I see in Tom's book it says you can claim the full expense of the items under $100 but i am unclear where to record the items.
an example is the laminator I bought for $27, it is 100% business use, so should I just put it on the schedule c as $27 or should I list it on form 4562 as a 5 year 200% item with 50% bonus because I purchased it new in 2012?
You would claim it on the sch-c...you can add it in with all other supplies (cleaning, paper, ink, crayons, books etc)...the IRS it's looking at each item line by line to see what it is...however if you are ever audited you would have you receipt(s) as proof of each item listed in the supply section.
Hope that helps
TomCopeland 10:02 AM 03-11-2013
Originally Posted by EAP:
For items you can depreciate that cost under $100 are you putting them on the schedule c or listing them on form 4562, I see in Tom's book it says you can claim the full expense of the items under $100 but i am unclear where to record the items.
an example is the laminator I bought for $27, it is 100% business use, so should I just put it on the schedule c as $27 or should I list it on form 4562 as a 5 year 200% item with 50% bonus because I purchased it new in 2012?
There is an unwritten IRS rule that states that any item you purchase the costs less than $100 can be deducted in one year and doesn't have to be depreciated. You can put these items on Schedule C.
The $100 rule is a rough rule of thumb. If it costs $105 I'd still claim it in one year.
TomCopeland 10:03 AM 03-11-2013
Originally Posted by Unregistered:
If it is under $100 we just put in on schedule C. Over $100 has to be depreciated. I am still unclear though on this if he item is say, $99, but with tax is $105, do we have to depreciate or can we just do in the one year???
Claim it in one year. $100 is a rough rule of thumb.
Should I do an extra line that says "under $100 rule" in section 27? Or lump it in with supplies?
TomCopeland 08:10 AM 03-12-2013
Originally Posted by EAP:
Should I do an extra line that says "under $100 rule" in section 27? Or lump it in with supplies?
Lump it with supplies.
Originally Posted by TomCopeland:
Lump it with supplies.
Thank you!