post #16 of 16
Quote:
Originally Posted by Evoir View Post

In the USA, can a business entity buy equipment (and then depreciate the cost over its life) from an individual?,Hence if the OP purchased $5000 of equipement, the BUSINESS entity she owns can purchase these items from her (as an individual) - albeit at second-hand prices - and thus she has a way of claiming some of the cost?

Converting personal assets to business use is one strategy, as you said the depreciation expense would be based on the market value at the time of conversion. For a pass-through business like a sole prop you don't even have to formally sell the assets to the business. For the OP, it might be helpful to bring a list of personal assets (with current FMV) that are being used in the business to the accountant.

More info:
http://www.bizfilings.com/toolkit/sbg/office-hr/vehicles-equipment/using-personal-assets-for-business-equipment.aspx