For the accountants on here
- Thread starter Airport
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I think you posted about this several months ago and I believe Coop gave you the right answer. It is part of your building and will be amortized over the length of life of your building and/or lease in certain circumstances. Yes, it does suck and I don't agree with that tax provision at all.
It's hell getting old. I forgot he did. My accountant said 39 years. I said,"I'll be 102 then." Shew Hoping one of you might be smarter than mine.[laughing]
Only thing you could have done is leverage your debt in which the outlay of cash for capital improvement will benefit you versus the ridiculously low yearly amortization of a piece of equipment that you are forced to do it over 39 years. But this conversation is getting into a very dorky level of corporate finance and for an Scorp such as yourself, it isn't really worth it. But there are smarter ways to pay for capital improvements which one can maximize their wealth with the assets they are adding. Welcome to my world of dorkiville.
Some times Accountants, Bankers, Analysts and Lawyers go IAW the old adage - - "Figures don't lie but, liars figure". [roll]
You are correct and what I tried to say my comments are beyond a scope of an S corp. But your example is what I am in favor of in terms of tax policy versus the crap that just passed. If politicians want to help small businesses and working class, let S corps expense this type of capital improvement over a 5 year period for tax purposes. The true expected life of a hvac unit is about 12 years with a residual value of about $0 after 3. Small companies will either pay cash or finance the expenditure over a few years. So tailor the tax policy to match real life for individuals that are having the cost of the business passed onto them with their tax bill and that is "fair". But these politicians you support aren't really looking out for what is best for the country or even for those that have voted for them, I'm sorry to say. They are throwing you a small bone while ATT is getting a windfall that is gigantic. If one is in favor of unfunded tax cuts (which I am not but many are including you), then support policies that favor what will help small businesses and the working class instead of blindly supporting a policy put forth by ideology of a political party based on an agenda.
I think for any expenditure under a certain threshold, it should be 3 years, maybe the 10,000 and up to 50,000 5 years. I wish there had been what you wanted, however, it is a start that was long overdue. I wish there were only 4 brackets. I wanted money earned overseas not taxed when brought back into this country. My philosophy is what's good for business is good for America. Without a job, what do you have?
It is hard for me to understand why some think that the war on poverty has worked or if it hasn't, all we need to do is throw another trillion dollars at it. Human nature just doesn't change.