Category Archives: Depreciation

Rentals Sort of

Today TaxMama hears from Doug in Alaska who has this tale of woe. “We have an apartment downstairs, that my wife and I have rented for the last three years. We decided that rather than put my ailing father-in-law into assisted living we could set him up in our unit below, where hospice and other […]

Used Equipment

Today TaxMama hears from John on the Internet who wants to know “I am purchasing some used equipment for my business. It has been fully depreciated by the previous owner. What depreciation schedules do I follow for used assets? For example, if I buy an asset that has a 7 year life but it is […]

Packing it In

Today TaxMama hears from Richard in McAllen Texas, who asks: “I am in the process of starting up a moving and packing business. It was my intention to purchase one or two used trucks—the type that the truck rental firms sell off after they have deprecitated them to their fullest. My question: Will used vehicles […]

Owning Rental Property

Today Donna from California did some research. “I’m interested in starting a small business in real estate centering around purchasing the property and renting it to tenants. But to my dismay I recently read that the IRS does not consider that a business. Is that true? I also read that this is a “gray” area. […]

Farmer Rings the Bell

Today Mark in Mississippi is still reeling. Here’s why – The other day, I dropped twenty bucks into a 50-cent slot machine and I won $326,000.00! I suspect that over half will be taken for state and federal taxes. As a farmer, can I offset the taxes due by adding to my farming operation (i.e. […]

S Corp and Office in Home

Today Heather from Portland, Oregon asks, “Can I report income from S Corporation on Schedule C? If not, how do I get the home office, depreciation, etc. deduction as I cannot find these in the 1120S form?”