[Jewelry making - Article 00059] - Re: [Orchid] Calculating capital investment return

[Kimberly Starbard]

========[ Invite a Friend - http://www.ganoksin.com/invite.htm  ]========

Hi Neil

    You can actually elect to deduct the entire cost in the year placed
    in service/purchased....This is called Sec 179. The dollar amount
    may have gone up, but it used to be limited to 108,000. There are
    other limits as well. They have to do with things like percentage of
    business use, income level, and your marital status. As always, you
    should consult with your CPA. It is important to note, however, that
    if you elect to take section 179 this year and, later, you stop
    using the piece of machinery before its useful life has run out, you
    may have to "recapture" depreciation taken under section 179. This
    means that the amount of depreciation that would have been left on
    the item had it been depreciated over its normal useful life would be
    added to regular income. This is probably not anything to be overly
    concerned with though. In your example, the thingy only costs 20,000.
    Someone who takes the full 108k deduction every year would fall under
    much closer scrutiny. 

    You could use the IRS's idea of useful life as an estimate to figure
    your per job price on the item, but IRS ideas of useful lives are
    very long. Probably, you would say to yourself...."If I buy this
    thing, I am likely to get good use out of it for about 10 years and
    then I'll trade it in for a new one" Then, you have a basis to
    figure (approximately) how much it will save you over time. 

Kim Starbard
http://www.kimstarbarddesigns.com
http://www.covebeads.etsy.com
____________________________________________________________________
T h e   O r c h i d   L i s t
Open Electronic Forum for Jewelry Manufacturing Methods and Procedures
____________________________________________________________________
Orchid FAQ:
~ http://www.ganoksin.com/orchid/faq.htm
Orchid Archives:
~ http://www.ganoksin.com/orchid/archive
Orchid Galleries:
~ http://www.ganoksin.com/orchid/gallery.htm
Invite a Friend:
~ http://www.ganoksin.com/invite.htm
____________________________________________________________________
Tips From The Jeweler's Bench - Article Archive
~ http://www.ganoksin.com/borisat/tip_sear.htm
The Jeweler's Selected Bibliography List
~ http://www.ganoksin.com/jewelry-books
Buy Orchid Jewelry:
~ http://www.ganoksin.com/shop
____________________________________________________________________
-Unsubscribe:
-Email: orchid-request AT ganoksin.com Body=unsubscribe subject=blank
____________________________________________________________________