Cameras and Taxes at DVinfo.net

Russell Newquist · September 23rd, 2004, 10:52 PM

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?

Ken Tanaka · September 23rd, 2004, 11:28 PM

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.

Jeff Donald · September 24th, 2004, 06:03 AM

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.

Mark Argerake · October 16th, 2004, 04:33 PM

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..

Jeff Donald · October 16th, 2004, 06:02 PM

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.

September 23rd, 2004, 10:52 PM	#1
Russell Newquist Regular Crew Join Date: Apr 2004 Location: Huntsville, Alabama Posts: 44	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? __________________ Russell Newquist http://www.russellnewquist.net/

September 23rd, 2004, 11:28 PM	#2
Ken Tanaka Retired DV Info Net Almunus Join Date: Dec 2001 Location: Chicago, IL Posts: 6,943	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. __________________ Lady X Films: A lady with a boring wardrobe...and a global mission. Hey, you don't have enough stuff! Buy with confidence from our sponsors. Hand-picked as the best in the business...Really! See some of my work one frame at a time: www.KenTanaka.com

September 24th, 2004, 06:03 AM	#3
Jeff Donald Warden Join Date: Mar 2002 Location: Clearwater, FL Posts: 8,287	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. __________________ Jeff Donald Carpe Diem Search DVinfo.net for quick answers \| Where to Buy? From the best in the business: DVinfo.net sponsors

October 16th, 2004, 06:02 PM	#5
Jeff Donald Warden Join Date: Mar 2002 Location: Clearwater, FL Posts: 8,287	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. __________________ Jeff Donald Carpe Diem Search DVinfo.net for quick answers \| Where to Buy? From the best in the business: DVinfo.net sponsors

October 16th, 2004, 04:33 PM	#4
Mark Argerake Major Player Join Date: Dec 2002 Location: Murrieta, CA Posts: 227	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..