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by Bill Chambers on Tue Jul 28, 2015 9:26 pm
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Bill Chambers
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Location: Milton, Florida
Since I've made the transition from photo hobbyist to photo pro, I have a tax question.

I bought a new lens back in February of this year for approx. $1250.  Since it will last longer than 1 year, I have to capitalize it and depreciate it.  My question, how do I determine the "useful life" period for depreciation purposes?  3 yrs, 5 yrs, or even longer.  Is there a form for such things?

Any tax gurus out there?  Any help is greatly appreciated, and thanks in advance!
When life deals you lemons, make lemonade; when it deals you tomatoes, make Bloody Mary's.
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Please visit my web site, Enchanted Light Photography.
Bill Chambers
Gulf Breeze, Florida
 

by Trev on Wed Jul 29, 2015 12:02 am
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I don't know about US tax but in the UK and in NZ depreciation is set by the tax office. Different assets have different percentages when it comes to depreciation. The asset depreciates each year until it reaches a zero value (even though it will still be usable)as far as the tax office goes. Its not set by the individual.
Trevor Penfold
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by Carolyn E. Wright on Wed Jul 29, 2015 9:52 am
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Carolyn E. Wright
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Check into the “section 179 deduction” that allows you to deduct the cost (up to a certain amount) of depreciable property in the year you buy it.

Check these resources for more info:

http://www.irs.gov/publications/p946/ch02.html

http://www.naturescapes.net/articles/business/tax-time-for-photographers/

Carolyn
Carolyn E. Wright, Esq.
Lawyer for Photographers and NSN Moderator
Photo Attorney® at www.photoattorney.com
 

by Bill Chambers on Wed Jul 29, 2015 9:17 pm
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Bill Chambers
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Location: Milton, Florida
Thank you Trev & Carolyn. Thanks especially for the links Carolyn.
When life deals you lemons, make lemonade; when it deals you tomatoes, make Bloody Mary's.
Unattributed

Please visit my web site, Enchanted Light Photography.
Bill Chambers
Gulf Breeze, Florida
 

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