Why Convert Personal Property to Business Use

Why Convert Personal Property to Business Use

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Why Convert Personal Property to Business Use?

 

tax-accountant-nyc-carIf you started a business or just realized you have items like computers, tools, furniture, or even a vehicle that you want to use in your business, there’s good news! Converting personal property to business use can reduce your taxes by way of depreciation deduction. This deduction is only available on property used to generate income such as in your business or investment.

IRS has specific guidelines for property conversion, which requires that you properly establish and assign the right financial value to the converted property. Once this is done the assigned value is called “adjusted basis” for depreciation purposes.   

What is my adjusted basis?

According to the IRS rules a conversion from personal property to business use must be valued at the

LESSER of…

  • the fair market value at the time of the conversion, or
  • the item purchase price plus any additions or improvements, and minus any deducted casualty losses, prior to the conversion

For example, if you bought a vehicle three years ago for $25,000, but its current value is only $12,000, the “adjusted basis” for depreciation purposes is the current value.

Typically, other than real estate, which does appreciate in value, things like computers, furniture, vehicles, or equipment usually depreciates from its original purchase price.

Considering converting personal property to business use? Get the details. Speak to our tax accountant for guidance. (646) 660-1820

– QuickBooks User Guide

– QuickBooks User Guide

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FREE Downloadable QuickBooks User Guides for 2015

 

For the convenience of QuickBooks users we are making available learning guides especially developed by Intuit. They contain simple step-by-step instructions designed to help you understand how to use this program correctly and efficiently. 

➡ DOWNLOAD QuickBooks for MAC Guide

➡ DOWNLOAD QuickBooks for Windows Guide

➡ DOWNLOAD QuickBooks Online Guide

Read our posts exclusively written for “Your’re the Boss” workshops:

 

Need professional help setting up or educating your staff on QuickBooks?

Call our office to schedule your setup or training session Monday to Friday 9:30am to 5:30pm EST

Our certified experts and business strategists have been advising and guiding small businesses since 2005!

What’s new for QuickBooks

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New Enhancements To QuickBooks

Every year Intuit developers try to come out with enhancements designed to make QuickBooks experience easier, faster or just more enjoyable. This year a number of noteworthy additions were implemented, although not all are going to be very useful to the majority of us.

 
General changes for all versions:
  • Income Tracker – You will now be able to add time and Expenses and exclude estimates, sales orders and time & expenses from the unbilled section.
  • Insights – This feature is now part of the Home Page. It’s a sleeker looking Company Snapshot found in prior versions.
  • Pinned Notes– These are great because you can now post a note to a customer or a vendor so it’s always visible. 
  • Tabs for Billable Time & Costs – You’ll be able to see how many billable records there are at the top of the tab without having to open each tab window for review. 
  • Portable company file – Now it’s much easier to send it your accountant.
  • Reminders Window – This feature was revamped for a better and clearer functionality
Minor Changes
  • The Admin can now abruptly end another user’s QuickBooks in progress session, even if they have unsaved data.
  • Once you fully invoice an estimate, it’s going to be fully closed by QuickBooks.
  • You can now filter the item list by inventory, assembly, or both. 
  • You can add P.O. numbers right in the Customer Center.
  • Converting Sales Order to Invoice has a better selection of items.
  • In situations when you need to de-activate an inventory item which has available inventory on-hand, a warning will come on.
  • You can now copy and paste your license key into the window during registration process instead of typing it. This is a great improvement!
  • Intuit has redesigned how the reports are seen on the screen. Background shading has been added to highlight lines as well as vertical lines which make it easier to review reports. 
  • You’ll be able to add comments to any line item on a report. 
  • You can now email multiple reports as a group in an attachment.
  • In a report filter, names are now sorted alphabetically and are searchable.
  • Inactive names can now be searchable on a report.
  • Other 1 and Other 2 custom fields can now be included on reports.
  • Preferred delivery method can be added to reports.
  • In some reports a Preferred Vendor can be added.
  • Manufacturer’s Part # on invoices, receipts and sales orders can now be included as a column option.
New in QuickBooks For Accountants

As an External Accountants you will be to access and use all the features available in the Accountant’s version when you log into your client’s QuickBooks file. However, this will only be possible if you maintain a ProAdvisor membership or a subscription to QuickBooks Accountant Plus. 

 

For help choosing which QuickBooks version is right for you or if you need to schedule a session for QuickBooks setup or training, please call our office Monday to Friday 9:30am to 5:30pm.