In article <9654af3d-8ddb-430a-8f54-47a7f2a11c8b[at]q26g2000prq.googlegroups.com> ,
SD <Don.Steiger[at]gmail.com> wrote:
- quote -

They're at risk: you paid cash (or got a loan that can claim against
anything you own and your future earnings) for them, right? So the
full value is at risk.

If I provided you with a computer under terms like "it costs $2,000,
which you will pay back with 15% interest, but only from the profits
of your business" then you aren't at risk for the cost of the
computer.

Seth

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- quote -


What if you set up an LLC and use a home office, and use your car for
business. I would think that those items are not at-risk, but still
depreciable?

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In article <bbce3766-99c8-4ca9-a7c6-2a6eea7d2439[at]l33g2000pri.googlegroups.com> ,
removeps-groups[at]yahoo.com <removeps-groups[at]yahoo.com> wrote:
- quote -

Use somebody else's money, in a non-recourse loan (so that the lender
has no recourse to your outside-of-that-business assets or earnings to
repay the loan).

Seth

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On Dec 21, 4:07 pm, SD <Don.Stei...[at]gmail.com> wrote:

- quote -

How could depreciation exceed amount at risk? If you buy a printer
for $500 and use it 100% for business, the most you can depreciate is
$500. If it's used 25% for business, the most you can depreciate is
25% of $500 or $125, and that's typically over 5 years.

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On Dec 22, 8:58*am, Brew1 <brew....[at]gmail.com> wrote:

- quote -

You own the house, the car, the computer, the fax machine (if I
remember correctly fax machines are non-listed property). These items
are converted to partial business use. You are at-risk with the
business you are running. (It would be nice if you can argue that you
are at-risk with the converted property, but I doubt that the IRS
would buy that).

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

In partial answer to my own question, if a sole proprietor does not
have an LLC in place then everything is at-risk and the at-risk part
of the question disappears.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Dec 21, 7:07*pm, SD <Don.Stei...[at]gmail.com> wrote:
- quote -

risk come
into play? Did you buy it with a non-recourse loan?

You can depreciate assets at the percentage they are business use--
special rules
come into play if they fall below 50% business use.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Let me be a little more specific. If you are using a home office, you
can only deduct depreciation up to the amount of income. The excess
can be carried forward. Now what about the general situation when you
are depreciating property that is also used for personal use (such as
a car, a computer, ...). Also what happens when the depreciation
exceeds at-risk? Can you carry it forward to some future date when it
no longer exceeds your at-risk and then use it as a deduction? This
has to be somewhere in the pubs, but I can't find it.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Don.Steiger[at]gmail.com (SD) posted:

- quote -

Almost _anything_ regarding individual returns can be found in Pub 17,
which after a brief discussion, points you to the right publication if
you need the "full Monty" -- which is, in this case, Pub 925.

Bill

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Anybody know what pub discusses at-risk rules for depreciation
deductions for property that is being used for both business and
personal use?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >