I received a $6000 mower and a $6500 plow as a gift from my parents to start my landscaping business. Can I put these down as assets and claim the depreciation if I did not purchase them myself?
Yes, your basis or cost of a gift is the same as it was from the giver (parents) of the gift.
You need to know exactly what your parents paid for the items they gave you.
Your basis for figuring a gain is the same as the donor's adjusted basis, plus or minus any required adjustments to basis while you held the property.
Yes, your basis or cost of a gift is the same as it was from the giver (parents) of the gift.
You need to know exactly what your parents paid for the items they gave you.
Your basis for figuring a gain is the same as the donor's adjusted basis, plus or minus any required adjustments to basis while you held the property.
Great! Thank you. Can I also add equipment that I owned before I started the company?
Please take a look at this link, while this was a day care business same rules would apply to your lawn service business.
<a rel="nofollow" target="_blank" href="http://tomcopelandblog.com/how-do-you-claim-expenses-for-items-you-bought-before-your-business-began">http://tomcopelandblog.com/how-do-you-claim-expenses-for-items-you-bought-before-your-business-began</a>