As soon as you are liable for the full cost, you can claim
the full cost. But as Harlan said, think about future
earnings. Do you want to spread the cost out to benefit you
in future years?

Nan, EA in LA
Entrenched belief is never altered by the facts.....

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

Will wrote:

- quote -

If you bought it and placed it in service before the end of
the year, and even though you owe on it, it's yours and you
may enjoy all the tax benefits inherent therein. (Did I
say that? sounds like a lawyer!)

However, on a practical note, plan carefully on how much
depreciation you do take, since to take too much in the
first year might just waste valuable benefits in coming
years.

ChEAr$,
Harlan Lunsford, EA n LA

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

You may take the 179 expense, and use any other reductions,
up to the allowable amount. That you made the purchase with
credit makes no difference.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

A corporation on the cash basis of accounting cannot claim
an expense until the money is spent (e.g., paid in full by
check, wire transfer/cash, or credit card). But what about
capital assets that are depreciated? If a business buys a
$150K capital asset in 2004, but only puts down $15K in
cash, can the business claim the full depreciation allowed
on the $150K asset? In other words, is fixed assets an
exception to the normal cash rules for cash-basis
businesses? I assume that you cannot take the Section 179
benefit and expense the asset for anything above what is
paid in 2004. But what about the 50% bonus depreciation
and the normal depreciation?

--
Will
Internet: westes at uscsw.com

PLEASE READ: To reply, CHANGE the username to westes AT
uscsw.com

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->