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    3 Replies Latest reply on Mar 13, 2008 12:00 PM by Lighthouse24

    Business Deduction?  Personal camera now used for business

    Consultant442 Newbie
      I bought a professional camera at the end of 2006 for personal use. I am now using it in my new business as a private consultant.

      1. Can I file this as a business expense (tax deduction) on my 2008 tax return?

      2. If so, what amount would I use? The price originally paid for the camera eqipment? The price it is worth today as used equipment? The price you could buy it for brand new today?

      Thank you!
        • Re: Business Deduction?  Personal camera now used for business
          LUCKIEST Guide
          442, Business Deduction? Personal camera now used for business

          Same answer You started a consulting business on January of 2008.
          Usually you have income and expenses in the same year.
          I think that you can "capitalize" Business Costs like a camera and
          then deduct them in 2008 when you have income.
          Every person in business should have an Account, A Lawyer and
          maybe an Insurance Broker.
          Another suggestion. Try "Dublin" He is an accountant, among others
          on this web site who gives good answers.
          • Re: Business Deduction?  Personal camera now used for business
            dublincpa Scout
            You will depreciate or deduct its used value when you started using it for business, but not to exceed the amount you paid. Don't forget to include subsequent upgrades or accessory purchases.
            • Re: Business Deduction?  Personal camera now used for business
              Lighthouse24 Ranger

              When I've done this in the past, I handled it like any other business transaction on the books -- wrote a check from the company to me to purchase the item at a reasonable fair market price (established by what identical age/condition products were selling for, by "blue book" listings for the product, or by appraisal), and listed the item on the business property inventory (also declared it on the business property rendition).

              That last part may be important depending on your taxing jurisdiction. For example, Texas doesn't have a personal property tax as some states do, but there are some local assessments on business property. I think it would be risky to tell one taxing entity (the IRS) that an item is business property while telling another (the city/county) that it's still personal property -- so consistency would seem to be important if your situation is similar.

              Hope this helps. Best wishes.