Posted: 9/21/2009 10:49:28 AM EDT
|
I've been filing as a sole-proprietor for about 10 years now. If I take a salaried position...
1) Is it necessary to "give up" my sole-proprietor status (i.e., Schedule C)? 2) If so, what happens to the business-owned equipment for tax purposes? |
|
1. no, lots of people have side business's
2. if you don't give it up (still make some income), it's all there. If you close the business, then you have to recover the depreciation against when you sell the equipment off. but really, you should ask your accountant. |
|
Quoted:
2. ...If you close the business, then you have to recover the depreciation against when you sell the equipment off. The intent would be for me to take personal possession. It's a desk, a couple of bookcases and computer hardware & software. Quoted:
but really, you should ask your accountant. Thanks, I plan to. Just thinking about different scenarios and how they'd work, generally speaking. |
|
Quoted:
Quoted:
2. ...If you close the business, then you have to recover the depreciation against when you sell the equipment off. The intent would be for me to take personal possession. It's a desk, a couple of bookcases and computer hardware & software. then you got "zero" for them and have to recover the deprecation. (your deprecation is normally an expense, but when you recover it, it's becomes income, although not really, it gets taxed different, but it goes to that side of the ledger) It's better to "buy" them for fair market value and then you only recover the difference. It's better not to shut it down, you never know if the "job" will work out. |
|
Quoted:
then you got "zero" for them and have to recover the deprecation. (your deprecation is normally an expense, but when you recover it, it's becomes income, although not really, it gets taxed different, but it goes to that side of the ledger) It's better to "buy" them for fair market value and then you only recover the difference. Thanks. That's what I needed to know. Quoted:
It's better not to shut it down, you never know if the "job" will work out. Yeah. Just looking to "uncomplicate" my life right now. Thanks again. |