Mostly! The sec 179 deduction is a bit of a misnomer since it is a depreciation term that allows you to deduct it all the first year. Thanks for the lesson, I will word that differently in the future!
In all cases, you must use the LOWER of fair market value or what you spent plus improvements for converted items.
Let me give you my favorite IRS link for starting a business, it even has You Tube videos to teach you how to promote your business!
Please look through, you will see one publication on starting a business, another on record keeping and recommended reading list for new businesses. Be sure you do not look like a hobby or all expenses will be lost. That is is there as well.
Small Business and Self-Employed Tax Center - complete guide
Good luck!
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