All correct, but my point was that you don't recoup the full $1,000 unless it is a tax credit. If it is only a deduction, you recoup only a percentage of the $1,000.
Maris ----- Original Message ----- From: <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Friday, November 23, 2001 12:32 AM Subject: Re: Depreciation of assets | In a message dated 11/22/01 6:24:30 PM Eastern Standard Time, | [EMAIL PROTECTED] writes: | | | > | > Deductions are not 100% money-in-the-pocket. It depends on your tax | > bracket. | > | > 100% amortized for a person in a 28% tax bracket means only that you have | > recouped $280 on the $1,000 you have spent, so you are still out of pocket | > by $720. | > | > Work out the math. | > | > Maris | > | | Maris, | IN THE UNITED STATES, if you pay $1,000 for an item used ~in your business~, | you have two ways to amortize the cost: regular or accelerated depreciation. | Either way, you bought $1,000 worth of business equipment and can (IRS says | you "must") depreciate the total cost, plus the cost of maintenance on the | equipment, choosing the standard which best fits into the accounting methods | you first chose when you started your business. | As for taxes: corporations don't have IRS "tax brackets," only individuals. | | Mafud | [EMAIL PROTECTED] | [EMAIL PROTECTED] | - | This message is from the Pentax-Discuss Mail List. To unsubscribe, | go to http://www.pdml.net and follow the directions. Don't forget to | visit the Pentax Users' Gallery at http://pug.komkon.org . | | - This message is from the Pentax-Discuss Mail List. To unsubscribe, go to http://www.pdml.net and follow the directions. Don't forget to visit the Pentax Users' Gallery at http://pug.komkon.org .
