Trailer expense

[Mcueva2093]

I have a construction business and I’m thinking about purchasing an enclosed trailer. Can I deduct the entire purchase price? Or will be depreciation over the years?

also, if I buy it used and have a bill of sale Can I deduct it as an expense?

[Critter-3]

If the total cost is $2500 or less you can just expense it otherwise it is an asset subject to the depreciation rules.  You can choose to depreciate, bonus depreciation and/or 179 deduction in any combination that works best for you.  A trailer is a 7 year asset for depreciation.   

Read up on the choices you have here :  

https://www.irs.gov/forms-pubs/about-form-4562

https://www.irs.gov/forms-pubs/about-publication-946

[Opus 17]

New or used doesn’t matter.  If it costs more than $2500, it is depreciated when placed in service, at the price you paid or fair market value, whichever is less.  (Most of the time when you buy from an unrelated person, the sales price is the fair market value, but there can be exceptions in unusual situations.)

As mentioned, you have several depreciation options, which each have advantages and drawbacks.