davco1 Posted February 22, 2014 Share Posted February 22, 2014 Which property class are you guys using to depreciate your bulk vending equipment? 3, 5, 7, or longer? Link to comment Share on other sites More sharing options...
AZVendor Posted February 22, 2014 Share Posted February 22, 2014 Let your accountant guide you on this. I had full line equipment and it was always depreciated over 7 years. Vehicles got the same. Even now, when I get a new asset that goes on the depreciation schedule it goes for 7 years. My CPA likes to make it work longer for me. Don't forget that there is usually a section 179 deduction that allows you to take full depreciation on new assets up to a specific value. This works very well if you have a larger than normal profit for last year that you need to offset. Again, speak to your CPA about this. Link to comment Share on other sites More sharing options...
davco1 Posted February 22, 2014 Author Share Posted February 22, 2014 My CPA has us on a 5 year recovery period and I just think it needs to be longer. As you probably know bulk equipment can last a lifetime. Link to comment Share on other sites More sharing options...
mission vending Posted March 1, 2014 Share Posted March 1, 2014 Which property class are you guys using to depreciate your bulk vending equipment? 3, 5, 7, or longer? My accountant has always recommended paying cash, if possible, and treating it as a expense. If it needs to financed his first recommendation is to lease it, again, so you can expense the payments and not have to deal with depreciation schedules and the possibility of "phantom income" Link to comment Share on other sites More sharing options...
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