Income tax depreciation/expense Question

[Indywannabe]

Does anyone know if video equipment purchased for a film project can use Section 179 to expense it in year one?

The choices are to treat the camera and equipment as depreciable assets or as expenses under the Section 179 rule.

 

[grinner]

if you epense it in section 179, you wont depreciate it next year.
TX still has no personal property tax right?

 

[Indywannabe]

What items do you typically put on form 4562 ? Do you use purchase price to make that determination...ie stuff >$1,000 is an asset and stuff <$1,000 is an expense?


Yes on the sales tax exemptions. One interesting non-qualifying item is the director's chair...darn.

http://www.governor.state.tx.us/divisions/film/incentives/salestax.htm

 

[Steve House]

Does anyone know if video equipment purchased for a film project can use Section 179 to expense it in year one?

The choices are to treat the camera and equipment as depreciable assets or as expenses under the Section 179 rule.

You really REALLY need to be talking to an accountant about this. Any advice you get here would be highly suspect.