Thanks again for all the replies! Since I didnt get anyone telling me NOT to expense the equipment I'm assuming there is no issue with that.
On Fri, Jun 4, 2010 at 1:32 AM, Scottie Arnett <sarn...@info-ed.com> wrote: > 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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