tax differal by making capital asset purchases?

Question

I am a new small business owner (LLC) currently working out of my basement, and am interested in purchasing some office space (yes, do not want to through money on rent). Is the purchase cost tax differed until I sell the asset (may be in 10 years from now?) Or do I have to use after tax dollars to buy the office space?

subject should read as: Achieving tax deferral through capital asset purchases?

Answer 1

No. It's not tax deferred. You can deduct depreciation each year though.

Answer 2

huh?.. if you pay rent you can deduct the total of the rent in the year you pay it, if you own you get to deduct the depreciation ( usualy the cost of the purchase over 40 years) and the actual costs of maintaining the property that year. my advice? buy the property personaly and have the llc pay you rent. this will be unerarned income ( not subject to SS save almost 15%)

Answer 3

You needless to say have an exceedingly VERY constrained wisdom persons Tax regulation. Mine isn't incredibly extensive yet i can declare with undeniable fact that anybody (different than in very constrained circumstances) who had earnings "in keeping with merchandising some thing for a earnings" as oftentimes as you traded your "qualifications/hard artwork for wages" could be paying the comparable tax expenditures as you. short-term "capital valuable aspects" are taxed in simple terms such as you salary earnings. the distinction is "payroll taxes". every physique who's self-employed will pay much extra of that than you. Why are dividends taxed at a decrease fee? because of the fact that dividend grow to be additionally taxed as earnings while the employer paying the dividend grow to be taxed. you are able to or would possibly no longer could desire to pay capital valuable aspects on your place once you sell it reckoning on what and once you do some thing with the proceeds. long-term capital valuable aspects are taxed decrease because of the fact it incredibly is regarded that the decrease fee can tend it inspire investment. there is no "disparity" in this element of the tax regulation. EDIT: short term capital valuable aspects at the instant are not taxed as popular earnings? clarify please. Or please clarify the place the "diagnosis" is inaccurate. you're using very imprecise phrases. "merchandising some thing for a earnings" isn't precisely specific. "Why am I charged a some distance better tax fee for doing easily artwork, than i could be for in simple terms merchandising some thing at a earnings?" you are able to and you is probably no longer "charged" a some distance better fee. You maximum truthfully pay payroll taxes that a "broking" could or is probably no longer project to.