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Painting Business Owners: deep dive into qualifying assets for depreciation.

Name: Painting Business Owners: deep dive into qualifying assets for depreciation.
Uploaded: 2024-06-14T12:45:02+00:00
Duration: 37 s
Channel: Daniel Honan
Description: To depreciate an asset in your painting business, you must own it, use it to generate business income, and not just have a hobby. Rented equipment gets…

14 Jun 2024 · 1 min

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To depreciate an asset in your painting business, you must own it, use it to generate business income, and not just have a hobby. Rented equipment gets expensed immediately. A personal vehicle doesn't qualify unless it's actually used for work.

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Do you own the property? You can't depreciate something that you don't actually own. So if you're renting a car, that's different than if you own a car. If you're renting a copier, lease payments would be immediately expensed, whereas purchasing a copier, they would be depreciated. Is the property being used in a business to produce income? Only business property gets depreciated. Your personal property, your personal vehicle or jet ski or camper, those do not get depreciated unless you're using that to generate income in an actual business. If you're using it for hobby income, there's no deduction.