The useful life of the machines can't be 5 years like the government says it should be. They were owner contributions and not purchased, so I don't believe I could expense them (unless I'm wrong). What are my options?
2007-01-13 04:31:14 · 2 answers · asked by Harry 1 in Business & Finance ➔ Taxes ➔ United States
unless there is a little bonus provision in the tax code, you are stuck with the class life of five years. You are right that you cannot expense them.
This is one occasion where perfectly reasonable provisions of the tax code work against you.
2007-01-13 05:42:17 · answer #1 · answered by skip 6 · 0⤊ 0⤋
You can't expense them or do anything with them! They are CAPITAL contributions. Capital can't be "expensed". They're stuck on the books as EQUITY. Next time, give cash to start or expand the business, then BUY computers with the cash.
2007-01-13 23:18:28 · answer #2 · answered by WealthBuilder 4 · 0⤊ 1⤋