Larry,
There is no more depreciation after the first year since he elected to expense or fully depreciate the entire asset.
If you sell the keyboard for 700.00 you are disposing of the asset at a loss, not a gain so there is no tax implications.
Now, if you sold the asset during the same year you expensed it, you have to calculate the number of months the assett was put in service and get a percentage. You can only take depreciation on the asset for the duration you had it in service. The whole idea is to offset the income earned with the expenses you incurred to produce that income.
Disposing of the asset only matters if you did not depreciate using section 179 depreciation expenses.
Ugh! Am I making myself clear? That's why I left the accounting industry!!!
Al
Originally posted by Beakybird:
So Al,
What do you put down for depreciation on the keyboard? It looks like you're an expert, at least to me. I think that it would be helpful to other musicians on this forum if you answered the two scenarios that I mentioned.
Thank you in anticipation of your response.
Larry
[This message has been edited by kbrkr (edited 06-12-2003).]
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