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#989961 - 02/26/05 04:27 PM

Expense vs Asset

jabney
Senior Member

Registered: 02/12/04
Posts: 113

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hi forum members,

Any special considerations you can think of when deciding whether to treat audio equipment as an Expense or an Asset for tax purposes?

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#989962 - 03/02/05 06:22 PM

Re: Expense vs Asset

bdbklyn
Platinum Member

Registered: 04/04/01
Posts: 1035
Loc: Los Angeles,CA,UNITED STATES

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maybe someof our tax experts can help out here.
My understanding is that is is both. It is a depreciable capital expense and you would (atleast in California) have to pay personal property tax on it.

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#989963 - 03/03/05 06:55 AM

Re: Expense vs Asset

forceman
MP Hall of Fame Member

Registered: 03/01/04
Posts: 4937
Loc: Metro-Detroit, Michigan

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Equipment cost is a major factor, as is revenue earned.

Studio improvement must be capitalized then depreciated (construction, cabling, etc.)

I am not an accountant, but have discussed this issue with mine last year.

HTH

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