Rick, You may have a choice... Look at Section 197. You may be able to expense in lieu of depreciate all of your asset purchases. You CPA will confirm.
http://www.section179.org/ Cliff -----Original Message----- From: wireless-boun...@wispa.org [mailto:wireless-boun...@wispa.org] On Behalf Of RickG Sent: Thursday, June 03, 2010 3:52 PM To: fai...@snappydsl.net; WISPA General List Subject: Re: [WISPA] taxes Listen, I'm not trying to be argumentative about this. I've always believed as Travis that it is your choice. But, the feedback I'm getting are that things are changing VERY QUICKLY with respect to how the IRS is viewing issues such as this since our government is in desperate need for more revenue. Beware, the "kinda, gentler" IRS is no more! I've spoken to a couple of CPA's about this. They are warning me that ALL "equipment" utilized in providing service should be depreciated - expensing it is sending a red flag to the IRS. My concern is that since this is another "grey area" in our tax law, that is truly does not give us a choice but rather gives the IRS options in order to deal with you as they see fit. Therefore, I prefer to get some feedback that WISP's are in fact expensing their equipment, especially CPE, so as to establish some kind of feeling for an industry standard. -RickG On Thu, Jun 3, 2010 at 3:05 PM, Faisal Imtiaz <fai...@snappydsl.net> wrote: > I am not sure what exactly you are concerned about.... > What Travis shared with you is accurate.... > > As a business owner, the tax law allows you the choice.....IRS does not > dictate one or the other....if done correctly both are within the scope > of the Law.... > > Regards > > Faisal Imtiaz > Snappy Internet& Telecom > 7266 SW 48 Street > Miami, Fl 33155 > Tel: 305 663 5518 x 232 > Helpdesk: 305 663 5518 option 2 Email: supp...@snappydsl.net > > > On 6/3/2010 2:55 PM, RickG wrote: >> Travis, thanks for your input. I'm really looking for feedback as to >> what our industry's standard is. I submit that the IRS does not look >> at it as a "personal, business choice". I'd rather do it correctly now >> than find out from the IRS I'm doing it wrong. >> >> On Thu, Jun 3, 2010 at 12:44 PM, Travis Johnson<t...@ida.net> wrote: >> >>> This is a personal, business choice. There is no set answer. Some of our >>> equipment we expense and some we depreciate. It all depends on what tax >>> breaks you need now vs. later. >>> >>> Travis >>> Microserv >>> >>> >>> RickG wrote: >>> >>>> Everyone's favorite subject :) >>>> >>>> I'm getting mixed information form my accountants on this and want to >>>> know what everyone else is doing. The basic question is this: Are you >>>> expensing or depreciating the equipment? Equipment being radios (AP& >>>> CPE), antennas, switches, firewalls, etc. >>>> With the cost of the electronics being so low, its not making much >>>> sense to depreciate. Which takes me to a second question: Have any >>>> WISPs been audited by the IRS for this reason? >>>> >>>> Thanks in advance! -RickG >>>> >>>> >>>> -------------------------------------------------------------------------------- >>>> WISPA Wants You! Join today! >>>> http://signup.wispa.org/ >>>> -------------------------------------------------------------------------------- >>>> >>>> WISPA Wireless List: wireless@wispa.org >>>> >>>> Subscribe/Unsubscribe: >>>> http://lists.wispa.org/mailman/listinfo/wireless >>>> >>>> Archives: http://lists.wispa.org/pipermail/wireless/ >>>> >>>> >>>> >>> >>> -------------------------------------------------------------------------------- >>> WISPA Wants You! 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