As a PC auditor for a rather large customer, this customer is doing over $10 million in revenue per year, their PAID accountants recommend that anything less than a $1,000 be expenses and anything over be depreciated. Their accountants are from a VERY large accountant firm, but anyways, you can take that with a grain of salt.
BTW, I am under a NDA. Scottie > AFAIK, our business is very typical for a small WISP. Some further > background: For the past few years, I've had a good friend do our > taxes. He is a Comptroller for a large company and has become too busy > to continue. Hence, the reason for my new concerns in my search for a > "good" CPA. Apparently, I'm just running into very conservative CPA's. > My friend who owned a WISP at one time disagrees with these CPA's and > says he would continue to expense it. I'm just looking for some > support to the idea. > Thanks to all for your comments! -RickG > > On Thu, Jun 3, 2010 at 6:54 PM, Faisal Imtiaz <fai...@snappydsl.net> > wrote: >> I figured there was some thing behind your question.. I know , below you >> are conveying what a CPA is telling you... but I think there is some >> context missing here.... >> >> I am not a CPA, so I am also going to using some simple language to put >> some context arround this.. >> Most of us who are replying back to you about expensing purchases are >> referring to what is knows as 'Section 179 Expense' >> >> Best Explanation is from the IRS it self... >> http://www.irs.gov/formspubs/article/0,,id=177054,00.html >> Needless to say there are some 'stipulations' for 'qualifying >> businesses'. >> >> I would be very much interested to hear / know the reasoning behind what >> the CPA's are telling you..... While I agree that all Government >> Entities Local/State or Federal are desperately looking for money, but >> that does not come at the expense of a 'reversal' of what an existing >> law at will by an agency or it's workers. There has to be some basis >> for it ...... >> >> 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 4:52 PM, RickG wrote: >>> 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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