19/ Now, talk about depreciation IRL, things wear out. IRS has charts for this. Cars = 10 yrs (or whatever), PCs = 3 yrs (or whatever), etc
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Replying to @MorlockP
20/ In general, if you buy a $20M asphalt plant, you get to write it down on your taxes on a straight line depreciation over X years.
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Replying to @MorlockP
21/ ...but that's a huge hassle when you buy a $12 shovel and write it off 90 cents per year. So there are exceptions for rapid / lump sum
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Replying to @MorlockP
22/ You want to do this for two reasons: (a) much less hassle (b) time value of money: better to save on taxes today than in 12 yrs
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Replying to @MorlockP
23/ There are two exceptions the IRS lets you use to accelerate depreciation: (a) farm startup costs (b) small amounts
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Replying to @MorlockP
24/ farm startup costs include: * research a priori * buying farm * buying equipment (e.g. tractor, greenhouse, etc.)
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Replying to @MorlockP
25/ small amounts is exactly that: under some cutoff ($10k ? Not sure.) IRS is all "f it, dude, let's go bowling."
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Replying to @MorlockP
26/ The good news is that TurboTax actually has support for form F, and it's reasonably good. Not perfect, but good enough, mostly.
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Replying to @MorlockP
27/ And it'll seem a bit silly to put in the $112 you spent at Home Depot on shovels and such...but your effective marginal tax rate > 25%
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Replying to @MorlockP
29/ ...so if you have 20 or so $100 receipts, that's $2k, and you're gonna save $500 in taxes on that. SO DO IT. KEEP ALL RECEIPTS.
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30/
There are rules about home vs farm. So @BrowningMachine isn't going to get to write off his ENTIRE barndominium. But prob half?!
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Replying to @MorlockP @BrowningMachine
ⓘ Dogs don't have thumbs Retweeted Frank Lloyd Righteous, Ph.D Misanthropologist
31/ Agreed; sounds plausible.https://twitter.com/Loweeel/status/849627048196923392 …
ⓘ Dogs don't have thumbs added,
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Replying to @MorlockP @BrowningMachine
32/ Anyway, that's all I know. I AM NOT YOUR ACCOUNTANT. I AM NOT YOUR CPA. GO READ THE IRS REGS. https://www.irs.gov/instructions/i1040sf/ …
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