#482721 - 03/17/04 07:11 PM
Depreciating Fixed Assets: 2480, monitors, & microphones?
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transfiguration
Chris
Planeteer
Registered: 10/28/02
Posts: 2232
Loc: Lockhart, TX
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Have any of you studio owner's operating as a business done any of this before? If so what conclusions have you come to?
I'm filing my first year taxes for the business and wish to depreciate the 2480, 824's, and some microphones.
Must all of it be considered: "listed equipment"?
Thanks! trans
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#482722 - 03/17/04 08:24 PM
Re: Depreciating Fixed Assets: 2480, monitors, & microphones?
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MuzikHead
Planeteer
Registered: 02/12/03
Posts: 338
Loc: Houston, Texas
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Hire a CPA to do your taxes. Their knowledge of current tax law will allow them to save you far more than you will have to pay them. No kidding!
Joe
_________________________
VS2480CD, VS8F2 x2, VS8F3 x2, UA Comp. Bundle, TCR3000 Reverbs, Focusrite ISA 428 w/ ADC, Roland AE-7000 x2, Edirol DA-2496, Dynaudio BM5A's, Acard; Mics: Apex 460, Groove Tubes AM62 & AM40, Studio Projects C1, Studio Projects B1's, AKG C3000B, AKG D112, Shure SM81's, Shure SM58's, Shure SM57, Octava MK-012's, Rode NT4; User Interfaces - Lava Lamps, Dark Sunglasses, Beer
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#482723 - 03/17/04 08:32 PM
Re: Depreciating Fixed Assets: 2480, monitors, & microphones?
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axeman
Planeteer
Registered: 04/01/01
Posts: 3475
Loc: 2480's mother board
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yes, it must all be listed on schedule C-1 Depreciation and Amortization Detail!
_________________________
axeman
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#482724 - 03/17/04 08:43 PM
Re: Depreciating Fixed Assets: 2480, monitors, & microphones?
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transfiguration
Chris
Planeteer
Registered: 10/28/02
Posts: 2232
Loc: Lockhart, TX
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Thanks for the responses so far.
So with depreciating recording equipment do you use:
5, 7, or 12 year terms?
M.A.C.R.S.?
Straight-line depreciation?
G.D.S.?
A.D.S.?
Do you consider all of your audio recording equipment as "listed equipment" on your taxes?
trans
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#482725 - 03/17/04 08:56 PM
Re: Depreciating Fixed Assets: 2480, monitors, & microphones?
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axeman
Planeteer
Registered: 04/01/01
Posts: 3475
Loc: 2480's mother board
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well, i am not sure i am qualified to answer all of those questions for your situation.
I use 12 year terms.
No MACRS
I use SL
No GDS
NoADS
I consider all audio recording equiment as listed equipment.
I do not know if this makes sense for you. I have a few other things going on that have a significant impact on these choices.
_________________________
axeman
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#482726 - 03/17/04 09:00 PM
Re: Depreciating Fixed Assets: 2480, monitors, & microphones?
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guitartb
Planeteer
Registered: 01/15/02
Posts: 6198
Loc: Over here
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#482727 - 03/17/04 09:05 PM
Re: Depreciating Fixed Assets: 2480, monitors, & microphones?
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transfiguration
Chris
Planeteer
Registered: 10/28/02
Posts: 2232
Loc: Lockhart, TX
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Axeman,
All of what you are saying makes sense. I am curious though as to what are the "other factors" that impact your decisions.
guitarb,
Thanks so much for your help. It is nice (at least to me) to know there is a CPA amongst us.
Must ALL audio recording equipment be considered "listed equipment"? Is there anyway around that? I do use it for personal reasons but 99% of it is business related.
Thanks again! trans
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#482728 - 03/17/04 11:22 PM
Re: Depreciating Fixed Assets: 2480, monitors, & microphones?
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VSCane
Planeteer
Registered: 07/14/03
Posts: 80
Loc: Royal Palm Beach, FL
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I agree with axeman, I've done my own taxes and depreciated equipment for the last two years.
If you bought the 2480 in the 2003 tax year, you can do a one time deduction on the entire thing instead of depreciating it.
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#482729 - 03/18/04 01:51 AM
Re: Depreciating Fixed Assets: 2480, monitors, & microphones?
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Johnneecat
Planeteer
Registered: 08/29/99
Posts: 2345
Loc: Lake Balboa, CA, USA
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If you bought the 2480 in the 2003 tax year, you can do a one time deduction on the entire thing instead of depreciating it.
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#482730 - 03/18/04 03:30 PM
Re: Depreciating Fixed Assets: 2480, monitors, & microphones?
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auralman
VS-Planet Artist # 404
Planeteer
Registered: 07/02/03
Posts: 1231
Loc: New York
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Straight line depreciation will give you the best break, but I don't think 12 yrs is correct -the standard for technology equipment is 3 years in the corporate world, but that applies mostly to computers, which tend to phase out very quickly. 5 Years may be a better plan.
To be consistent, don't forget to itemize your phone, internet connection, and car/gas, as they are all used for your business.
Needless to say, keep your receipts.
Are you registered as a sole proprietorship?
_________________________
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#482731 - 03/19/04 08:55 PM
Re: Depreciating Fixed Assets: 2480, monitors, & microphones?
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transfiguration
Chris
Planeteer
Registered: 10/28/02
Posts: 2232
Loc: Lockhart, TX
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Auralman,
I am registered as a sole-proprietorship. I have posted this question around various forums on the net. 90% of the help I received was from "guitarb" (who is a CPA) in this thread: Thanks guitarb!
Computer software for the biz (Quickbooks) must be depreciated over 3 years. The 2480 will be depreciated over 5 years, as it is essentially a computer. All other remaining equipment (stands, mics, cases, & mic cables) will be depreciated over the 7 year period as it is included in this description:
"Any property that does not have a class life and has not been designated by law as being in any other class."
Since I am experiencing a NOL this year with the biz I will not be utilizing any Section 179 deductions. I also will not be utilizing M.A.C.R.S., G.D.S., or A.D.S. It will all be straight line depreciation.
If anybody else has some thoughts I would certainly welcome them.
Thanks! trans
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