Question

Wendy is a self-employed certified financial planner who started her business in 2018. During the year, she purchased a $500 computer and a $250 desk. She also paid $6,000 in legal/incorporation fees and spent $12,000 for a new roof for the office building she owns. Which purchase(s) can she expense in 2018 without limitation.1. limitation? Computer and desk.
2. Computer, desk, and legal/incorporation fees.
3. Computer, desk, legal/incorporation fees, and roof.
4. Legal fees/incorporation fees and roof.

Answer 1

Computer and desk

Explanation:

As for small-business assets, the latest IRS regulation postiton notes that funds under $2500 may be shown as business expenses, which was under $500 until 2016. This was $500.

Legal and incorporation payments are allowed in accordance with normal business practices such as return loading, etc. But it is expected to be connected to the new office roof. Here query does not suggest. Hence not allowable.

Computers that you are buying to use in your business or at work are exempt. If you are true, in a single year you can deduct the entire cost. Computers are no longer included in the tax cuts and employment law, therefore less reports are required and incentive depreciation can be used.