Plan for acquiring new assets and when to dispose of former assets. Asset management and depreciation is an area of major tax savings. Different depreciation methods will be discussed and reviewed. Section 179 and Bonus Deprecation are two major advantages (tax tip) Tax Strategies for asset management will be carefully reviewed on an individual basis. Schedule a free consultation.
**Assets are the property, such as machinery and equipment, you own and use in your business. You must keep records to verify certain information about your business assets. You need records to figure your annual depreciation deduction and the gain or (loss) when you sell the assets. Your records should show all the following.
- When and how you acquired the asset (whether the asset was new or used).
- Full purchase cost of the asset.
- Cost of any improvements.
- Section 179 deduction taken.
- Deductions taken for depreciation.
- Deductions taken for casualty losses, such as losses resulting from fires or storms.
- How you used the asset.
- When and how you disposed of the asset.
- Fair market value of property when traded.
- Selling price.
- Expenses of sale.
The following are examples of records that may show this information.
- Purchase and sales invoices.
- Real estate closing statements.
- Canceled checks.
- Bank statements.