On 2008-08-27, Grant Erwin wrote:
I have had a large hobby metal shop for a long time. I have recently begun
operating as a small business out of my home shop. I have never deducted
anything (yet) from my taxes.

big mistake

I want to know the mechanics of transferring assets to my business and then
depreciating or writing them off. There is lots of information out there on
how to depreciate assets purchased new, but little on my situation. For
example, I have an older but fully rebuilt Bridgeport mill which would
probably sell for about $4k right now. Can I transfer the asset to my
business and depreciate that over seven years?

You definitely need to talk to an accountant.

If it was up to me, I would not depreciate anything that I already
bought with personal funds, but I would write off the new stuff.

The key is to make enough money to cover your writeoffs to make a
profit every year.

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