I’m a completely independent artist and also have a couple of top end computing along with A/V equipment that requires me to pay over $12,000 total new. Can one depreciate the need for the gear over many years? If that's the case, what’s the perfect method to space them out (e.g. all-in-one year, over as numerous years as you possibly can, etc)?
Answers (1)
You are able to depreciate it over five years because it would come under equipment for your office. However, using Section 179 you are able to discount the whole price of the gear in 12 months.
Section 179 from the IRS tax code enables companies to subtract the entire cost of being approved equipment and/or software bought or funded throughout the tax year. This means that if you purchase (or lease) a bit of being approved equipment, you are able to subtract the entire Cost out of your gross earnings. This is an incentive produced through the U.S. government to inspire companies to purchase equipment and purchase themselves.