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a while back I posted in the Tools forum a list of < Obsolete Link > ‘tools for a small building company’. well recently I was curious about that again and put prices on the list from a few catalogs I have here at home.
excluding vehicles, my total cost for all these tools new was about $7,000.
so now I’ve got the question what makes you more money: buying many tools at once or buying tools over a long period of time. given that you’ve got the money in the first place.
IRS section 179 allows you theoretically to deduct all of these tools from business income in one year — I’m not positive about that, but that’s my understanding from irs.gov. is that the best way to go?
knowing that you can’t depreciate ‘personal tools’ even if you later put them into business service would you buy new tools assuming (1) adequate capitalization and (2) that it makes sense to buy new tools (for service life, new features, etc.)
I guess the person to ask is a CPA but I’m just curious if anyone here has picked up general tips on acquiring tools/capitalizing the start-up business. there must be a way to stick it to the IRS. even though they do have a nice website for construction biz info.
thanks,
GO
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a while back I posted in the Tools forum a list of < Obsolete Link > 'tools for a small building company'. well recently I was curious about that again and put prices on the list from a few catalogs I have here at home.
excluding vehicles, my total cost for all these tools new was about $7,000.
so now I've got the question what makes you more money: buying many tools at once or buying tools over a long period of time. given that you've got the money in the first place.
IRS section 179 allows you theoretically to deduct all of these tools from business income in one year -- I'm not positive about that, but that's my understanding from irs.gov. is that the best way to go?
knowing that you can't depreciate 'personal tools' even if you later put them into business service would you buy new tools assuming (1) adequate capitalization and (2) that it makes sense to buy new tools (for service life, new features, etc.)
I guess the person to ask is a CPA but I'm just curious if anyone here has picked up general tips on acquiring tools/capitalizing the start-up business. there must be a way to stick it to the IRS. even though they do have a nice website for construction biz info.
thanks,
GO