Daniel HonanFounder, Profitable Painter CPA PLLC · I help painting contractors increase profits & cash flow while reducing taxes♦ Bookkeeping ♦ Tax

Painting Business Owners: listen in as Daniel & Richard discuss an intro to bonus depreciation.

Name: Painting Business Owners: listen in as Daniel & Richard discuss an intro to bonus depreciation.
Uploaded: 2024-06-10T12:45:00+00:00
Duration: 46 s
Channel: Daniel Honan
Description: This content was created by balanced-griffin. This content was uploaded by balanced-griffin. This is a YouTube video titled "Painting Business Owners…

10 Jun 2024 · 1 min

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This content was created by balanced-griffin. This content was uploaded by balanced-griffin. This is a YouTube video titled "Painting Business Owners: listen in as Daniel & Richard discuss an intro to bonus depreciation." The excerpt is an educational segment (created 2024-06-10) in which the speakers (Daniel and Richard) explain depreciation basics for painting business owners—distinguishing short-term deductible expenses (e.g., paper, toner) from capital assets that must be depreciated over their useful life (example: a $10,000 copier lasting seven years) as an introduction to bonus depreciation.

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What is depreciation and when do we use it? Depreciation is kind of a misunderstood thing sometimes. So to kind of put it in a nutshell, you have two types of business expenses. You have your normal everyday expenses that you pay for and you write off as a deduction in the same year that you purchased it. For example, you go out and you buy copier paper and copier toner. That's going to get used up within the year. You write that off the year you, you buy it. But let's say you go and you buy yourself a brand new copier and you spend $10,000 on this piece of equipment that's going to last for 7 years. IRS doesn't want you to just write off $10,000 in the year that you purchased it because this is something that has a lifespan of more than 1 year.