gear depreciation

[daeve]

hi guys! i need to get estimates value for my gear and i was wondering how you go about calculation depreciation?

thanks

dave

[Rick Sutton]

5 year depreciation.
year #1....15%
year#2...... 21%
year #3......21%
year #4......21%
year #5......the remaining balance

[marcnyc]

unless it's vintage gear in which case it could go up depending on what it is

[tINY]

You still can amortize it that way. But if you sell it, you have to declare the proceeds as income.



-tINY

[Rick Sutton]

In my earlier reply I laid out 5 year depreciation as used for tax purposes but if you are trying to figure out what the current value of a piece of gear is (say for insurance purposes) that's a whole different thing.

[Tibbon]

You can do a double declining depreciation as well. You've got a business, call an accountant!

And a lawyer while you're at it!

[daeve]

well this is mainly because my partner and i are splitting... and also for tax and insurance purposes.