What Form 4797 Asset 2022-2023

Instructions and Help about What Form 4797 Asset

Today's Tuesday tax tip has to do with appreciable assets for the many small business owners and home-based business owners out there that may not be aware of it the IRS allows you to deduct certain furniture and equipment on your tax return however these items are typically not deducted all in one year would have to be depreciated over a number of years in other words furniture desk chairs tables would normally be 7-year assets meaning you purchased the table for fourteen hundred dollars if you use straight-line depreciation divided by seven years you would take two hundred dollars a year computers printers telephones anything electronic typically has a five-year life so if you bought a computer for let's say eighteen hundred dollars you would wind up deducting three hundred and sixty dollars a year for the next five years in addition to the normal depreciation there's a couple of other things that you need to be aware of one accelerated depreciation there is a method out there and and the calculation itself is a little beyond the scope of this video but the basics to keep in mind or that depreciation is larger in the earlier years and smaller in the later years and the reason for accelerated depreciation is it was originally thought that a machine works best when you first get it so it's worth more in the beginning years so that's something to keep in mind for your tax return and the other bigger item to keep in mind is section 179 section 179 is a code put in place by the IRS which allows you to deduct the cost of a fixed asset all in one year so in other words if we have that fourteen hundred dollar table that we purchased under section...