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Unless you are selling a boat or a car at a garage sale you probably can't calculate depreciation. Typically only capital items can depreciate.
by jandrese 6y ago
Unless you are selling a boat or a car at a garage sale you probably can't calculate depreciation. Typically only capital items can depreciate.
- jedberg 6y agoThe IRS has a publication for that! https://www.irs.gov/pub/irs-pdf/p946.pdf https://www.irs.gov/pub/irs-pdf/p946.pdf You can pretty much depreciate any physical object that wears out over time.
- jandrese 6y agoI want to see the guy who lists his Bic pens that he lets customers use to sign contracts. Yes, it has a limited lifetime. Yes it will last over a year. Yes you'll be audited if you claim depreciation on them.
- jedberg 6y agoYou would probably just do a Section 179 on the entire bag in the year you purchased it, which would be totally legit.
- voxic11 6y agoOnly ones that you use for business or income. Personal property used for non-buisness or income producing activities is not depreciable. > To be depreciable, the property must meet all the fol-lowing requirements... It must be used in your business or income-producing activity
- jedberg 6y agoIf you're selling at a garage sale it just became part of your income producing activity.
- pdonis 6y agoEven if you take this viewpoint, it still means you can't depreciate the item, because it wasn't part of your income producing activity until just that moment, which means the depreciation is zero, since depreciation can only be taken based on the time the item was used for your income producing activity.
- kube-system 6y agoThat’s not what that means. That phrase is referring to you using an item as a tool to generate income. You could depreciate a desk that you work at, but not the one that your kids do their homework on. (Because homework is not an income generating activity)
- deleted 6y ago[deleted]
- mindslight 6y agoYou can, but why would you? Buying into the accounting-uber-alles paradigm only makes sense for business that can actually benefit by deducting the depreciation. Individual taxpayers get no such benefit, and therefore have no need to depreciate items. And without depreciation, yard sales consist chiefly of capital losses.