"F. George McDuffee" wrote:

On Wed, 27 Aug 2008 15:59:20 GMT, 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.

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?

Thanks,

Grant
=============
Unless you are making megabucks and have significant deductions,
IMNSHO you are far better off staying under the radar.

The few dollars you *MIGHT* "save" through depreciation will be
swamped by the multitude of new expenses, fees, permits, taxes,
licenses, etc. etc. that will be levied and the inspectors will
descend like locusts on your home/shop. As soon as the value of
this equipment becomes know, personal property taxes will be
levied, possibly with back taxes and penalties, and depending on
where the payoffs are made, your home/shop will become a burglary
target. The seedier/poorer your home/shop looks on the outside
[and keep the door down] the better.

Exactly. If it's to be a real business and produce real income and it
isn't a simple office / computer based business, it *needs* to be housed
in a separate commercial location, i.e. industrial park suite. Once you
have a business with machines, then the insurance, zoning, OSHA, fire
code and other headaches require separation from your residence.