Capital Expenses vs Operating Expenses
Submitted by Anonymous on Tue, 2008-03-11 12:17.
To what extent to we need to separate capital expenses from operating expenses for a newly formed LLC? We purchased some small electronics - laptop, camera, & printer to get started. Total expenses for these items is around $3500. These things will obviously last more than the first year, but can we just include this as operating expenses for 2008 since it is a small amount or do we need to complicate our lives with depreciation, etc? thank you for your time and thoughts!
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These things will obviously
These things will obviously last more than the first year, but can we just include this as operating expenses for 2008 since it is a small amount or do we need to complicate our lives with depreciation, etc? thank you for your time and thoughts!tiffany jewelry is your best Tiffany & Co sliver jewellery provider.
Captial Expenses
These items are capital expenses. They should be depreciated or you can opt to expense them in the year purchased under Section 179. The equipment must be new and you must have sufficient income to absorb it.
I prefer to make this election. If you don't have the income, it will carryforward and you could use next year, assuming you have sufficient income then. Beats the depreciation headache.
L:)