Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [depreciation]

95 questions
58
votes
8 answers

Do rental car agencies sell their cars at a time when it is risky for the purchaser?

I want to buy a used car, but found many used cars were formerly owned by rental car agencies. Many websites and articles warn against buying former rental cars, because people renting these cars often mistreat them. But from a financial point of…
Village
  • 3,097
  • 5
  • 37
  • 48
21
votes
3 answers

Is money from the sale of an asset considered income?

Is money from the sale of an asset, like a pickup truck, considered income? For example, let's say I am a carpenter and I buy a new pickup truck for $40,000. I deduct $18,000 in depreciation for the first tax year, then $16,000 for the second tax…
Five Bagger
  • 9,865
  • 9
  • 45
  • 80
13
votes
6 answers

How do you calculate the depreciation on a car?

I’m thinking of selling my new car. Here are some informations about it. Model: Suzuki XL7 2022 Bought: Brand New, January 2022 (6 months of usage) Initial Price: ~$16600 Mileage: 3100 miles If I’m selling my car this month, what price is…
Kezia
  • 131
  • 1
  • 3
10
votes
4 answers

How should I value personal use television for donation?

Given an LCD television using primarily for personal use, if I were to donate it what would the donation value be? I assumed that I should take straight-line depreciation over its useful life? IRS says 5-years for computer equipment, but I couldn't…
Matthew
  • 3,170
  • 21
  • 31
9
votes
2 answers

Time, money and probability: Should i sell my electric bike

I bought a second hand electrical bike for a very reasonable price (600 euro) more than a year ago. Since then i changed jobs and i now commute by car and the bike just sits in the shed. If I sell it now I can probably still get a nice price for it.…
Ivana
  • 193
  • 5
7
votes
1 answer

Off-the-shelf Computer Software Depreciation

For the 2018 tax year, I'm looking to take 100% bonus depreciation on software expenses for my US (California) based LLC. While the tax code states that "Off-the-shelf computer software" is eligible property for the section 179 deduction, it's vague…
JWK
  • 175
  • 4
6
votes
3 answers

Is it common for a new car of about $16k to be worth only $4-6k after three years?

This question made me wonder how, according to the OP of that question, a car that cost about $16,000 can be worth only $4,000–$6,000 after a mere three years. Does a new car usually depreciate that much?
SQB
  • 907
  • 7
  • 17
6
votes
3 answers

U.S. Taxes: Can you deduct or depreciate equipment that was both bought and sold in the same year?

Assume there is equipment used for a for profit endeavor that will be deducted from earnings. That equipment is also sold in the same year, for less than or equal to the purchase price. How does this affect the deduction, and/or depreciating of…
CQM
  • 20,209
  • 6
  • 54
  • 93
6
votes
4 answers

Fix vs buy: do I really need to consider a car's "value" with depreciation?

I have been thinking about the question of how to determine whether to fix my current or buy a new car. Everything I have read (see, for instance, the answers on this question) talks about determining the value of the car, including depreciation, to…
Patrick87
  • 2,316
  • 16
  • 16
5
votes
1 answer

IRS Useful Life of a Laptop Computer

I own an IT/software company. I'm getting ready to ramp up a new venture and want to purchase some new laptops for my remote employees and myself. According to IRS publication 945, chapter 4 (https://www.irs.gov/publications/p946/ch04.html),…
Charles H.
  • 65
  • 1
  • 1
  • 6
5
votes
2 answers

Is laminate flooring an "Improvement" or "Depreciable Property"?

My question assumes MACRS GDS depreciation, in the United States. I converted my primary residence to a rental property last year. While I still lived there, I installed laminate flooring in some of the rooms. This type of flooring snaps together…
bitsmack
  • 233
  • 3
  • 10
5
votes
4 answers

Is it true that rental income may end up not taxable in USA?

Somehow I always thought rental income is taxable (maybe because I heard that some landlords don't report that income and so the tax board or IRS created the "renter's credit" so the renter will claim the credit and therefore expose the rental…
nonopolarity
  • 1,593
  • 2
  • 14
  • 21
4
votes
1 answer

Depreciation and capital gains on a rental condo in the US

I rent out a condo that I purchased two years ago. I make a small profit. It may be advantageous for me to depreciate the condo. This presumably will increase the capital gains that will occur when it is sold. My question: Does the IRS insist that…
peter Clarke
  • 301
  • 1
  • 3
4
votes
2 answers

Landlord living in rental unit - tax implications?

I own a 2 family house, and after many years of renting out one half of it (and many travails with tenants), I have moved a family member into the property rent free. I have unused depreciation in the rental part of the house because my income…
user40991
  • 41
  • 2
4
votes
2 answers

What can be done to mitigate rental income tax liability once depreciation is fully exhausted?

US standard fixed rate mortgage on a rental property. If rent is $X/month and all in mortgage is also $X/month, it would suck to need to pay income tax on $X x 12 for the year, when it all went towards paying the mortgage. Thankfully, I can count…
Runeaway3
  • 2,918
  • 6
  • 24
  • 42
1
2 3 4 5 6 7