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baileylouise98
New Member

What does Asset purchases mean?

No
1 Best answer

Accepted Solutions
MichaelL1
Level 15

What does Asset purchases mean?

It is something that you would be depreciating on the return.  It increased the life or value of an existing asset. 

Repairs are current expenses and are deductible in current year when an asset the deduction is spread out over a number of years through depreciation.

IRS does use a safe harbor rule that if under $2,500 it can be deducted in the year of purchase.

If I am not answered your question, please post a comment and I can help.

Thank you

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2 Replies
MichaelL1
Level 15

What does Asset purchases mean?

It is something that you would be depreciating on the return.  It increased the life or value of an existing asset. 

Repairs are current expenses and are deductible in current year when an asset the deduction is spread out over a number of years through depreciation.

IRS does use a safe harbor rule that if under $2,500 it can be deducted in the year of purchase.

If I am not answered your question, please post a comment and I can help.

Thank you

baileylouise98
New Member

What does Asset purchases mean?

Thanks

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