2. misc-audio
  3. 160362-1601

Audio tax write-off

Hello,

I have a company that produces documentaries and podcasts on personal and commercial histories. I have needed to acquire computer equipment to do my work, and I've borrowed some equipment from my 2-channel system, such as headphones, as well. My question is, do any of you write off home audio audio acquisitions for your business? Do you know the tax rules on this? Does it have to be branded  as "pro" gear to qualify? Thinking I need a better DAC and studio monitors. If I bought a component called "Schiit," would the tax auditor go "nnnnnnnnnnoooooo?" 

Thanks for your input.

Paul


paulburnett

Showing 9 responses by djones51

djones51
4,947 posts
 
Life expectancy is half of it cost applies as well. Depends how the business is set up. To many variables we don't know. 
djones51
4,947 posts
 
Yes talk to your tax guy or gal it looks like it's a business expense.
djones51
4,947 posts
 
Abnerjack, what I'm talking about is WE set the threshold for what WE will depreciate and WE do not depreciate any item that costs $5000 or under. 
djones51
4,947 posts
 
For instance we report computers as an expendable asset if they cost under $5000. Life expectancy isn't the only variable in the equation. 
djones51
4,947 posts
 
You’re right as far as you go. Define capital assets? It’s life expectancy and cost there has to be a cost threshold or like I said we would be depreciating staplers and ink pens.
djones51
4,947 posts
 
You can't only use life expectancy, a stapler last more than a year, that's why you use  a capital threshold. This is basic stuff. 
djones51
4,947 posts
 
Ask a CPA, tax attorney or tax authority if these types of acquisitions are expendable supply or capital assets. You should of made these decisions when you set up your business what $$ amount is considered expendable supply? 
djones51
4,947 posts
 
If you need better equipment for professional work I would stick with pro gear. Something like RME or Mytek for a DAC , Genelec for monitors. It doesn't need to be labeled "pro" for tax purposes , keep good records so you have a paper trail.
djones51
4,947 posts
 
It’s what we set as the capital assets threshold, if it cost $5000 or more life expectancy more than a year it's depreciated,  under it's expense in that year.
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