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Schedule C - Depreciation

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  • Schedule C - Depreciation

    Does anyone know the general guidelines when it comes to tool and equipment depreciation if purchased new or used? How do you separate fuel cost between your truck expenses and fuel used by your equipment? Any information will be greatly appreciated when filing a Schedule C.

  • #2
    doesn't matter whether purchased new or used. the item still has a cost and length of time to depreciate. for fuel, I write on the receipt what the fuel is for. ie. truck, mowing, handhelds, diesel for the Kubota. I buy my fuel from one source for my business. This makes it a lot easier for me.

    Depreciation is one of the trickiest parts of taxes. If you have questions, I would suggest you hire an accountant. Sit down with him/her for a good one on one.

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    • #3
      I keep the fuel for trimmers, blowers, etc separate. I use mileage for the truck.

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      • #4
        Mileage will work if you drive a newer truck and put on a lot of miles. My truck is old and may require more repair per year than using actual mileage rate.

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        • #5
          The IRS has a depreciation schedule for everything. I think you can get it by just goggling it. Off the top of my head I think lawn equipment is 7 years hand held stuff shorter. But don't take my word for it

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          • #6
            I agree with getting an accountant.

            I just list my purchases and come years end she does everything.
            I don't know or care to know whats is still on the IRS' books, I leave that to my accountant, simple.
            We tract
            Labor
            Truck mileage
            All fuel, it don't matter of its for a mower or 2 cycle just fuel
            Office cost
            Shop cost
            And investments/ purchases
            Then the gross income.

            7 lines is all it takes on a coloum pad then
            We list each piece of equipment individual so it's applied as needed.

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            • #7
              Have you used turbo tax at all? They have the ability to handle schedule c in their 'home and business' version.

              There are some good videos too that teach you about depreciation on youtube like this one.

              <iframe width="420" height="315" src="//www.youtube.com/embed/okd7eaEo4As" frameborder="0" allowfullscreen></iframe>
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