Will i need to pay tax on newly asstes!

Webbly

Rookie Expediter
I'm going to buy new assets for my running business, i'm doing business of transportation and due to business expansion i need to buy newly truck which fulfill business need. But i'm little bit confuse that will i need pay tax on it or not necessary?
 

Fkatz

Veteran Expediter
Charter Member
]Afternoon Webbly, Any asset that you purchase is not a taxable item on your tax return, it is a depreciable item for a period of 3 years with a 4 year life at straight line depreciation, with a 4 year life, meaning depending on the month and day it is put in service, the depreication starts, and you will receive the deposit and the balance would be depreciated from that date. it would be reduced depending on the date it was put into service.


Franklin Katz, ATP, PA, PB
Frank's Tax & Business Service
315 E. King St.
Kings Mountain, NC 28086
704-739-4039
E-Mail: [email protected])
Web: www.prep.1040.com/frankstax

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n the month is starts Only if you sell the asset then it might be taxable.
 
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