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Old September 23rd, 2004, 11:52 PM   #1
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Cameras and Taxes

This may have already been answered somewhere else, but I couldn't find it. I apologize if I've just missed something.

I have a tax question for all the professionals here. When I buy my camcorder, is that a "business expense" that I get to just deduct straight up, or do I have to depreciate that over a period of years like I would a computer?
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Old September 24th, 2004, 12:28 AM   #2
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The answer depends entirely on how you've structured your business and your accounting. Generally speaking, costly equipment is considered a capital expenditure and is depreciated over a period of years to reflect the period over which you will derive income from its usage. But you must maintain year-to-year consistency in how you handle your depreciation schedules. That is, you cannot just decide you want a new camera this year so you'll write it all off on your 2004 returns.

But, as I say, an answer is dependent on several factors regarding your business' structure. Consult your accountant or tax advisor. Nobody here (myself included) is qualified to offer you any truly reliable tax accounting advice.
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Old September 24th, 2004, 07:03 AM   #3
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It can be expensed in either one year (section 179, I think) or scheduled depreciation over a set number of years. You are limited to how much you can deduct with section 179, if I remember its around $20,000. There can also be special deprecation allowances for areas hit by disasters. You should really consult with a CPA about your taxes.
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Old October 16th, 2004, 05:33 PM   #4
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Jeffs right. Equiptment is a long term asset which can be depreciated on our 179. I strongly suggest getting a pro to do the taxes for you and to explain the particulars about limits and qualifications..
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Old October 16th, 2004, 07:02 PM   #5
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Mark, thanks for contributing to this older topic. I just read an article the other day that stated that the IRS had upped the limits of Section 179 deprecations. However, at the same time they became much more restrictive of the qualifications for a Section 179 deduction. Please consult a CPA with tax and accounting questions.
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