I am starting a home business selling Herbalife nutritional supplements. I am a sole proprietor , but they send me a 1099 at the end of the year. Can I purchase a used minivan and a laptop for my business and then claim the whole amount on my taxes using the form 4562 section 179?

Can my name and my husband's name be on the title of the minivan, if he is not a partner on the retail merchant certificate ? Or does the title have to have the Doing Business name on it?

This is all new to me. I hope to hear from you soon. Thanks again

How the assets are titled doesn't matter for tax deduction purposes. What matters is how they are used. You can deduct the cost of business equipment based on its percentage used for your business. For computers, it's based on time used. For vehicles, it's based on miles driven.

If the van weighs more than 6,000 pounds and is used more than 50% for business, it is eligible for the Section 179 immediate expensing election for the business portion. If it weighs less than 6,000 pounds, you have to depreciate it over five years.

You really should be using the services of a tax pro to make sure you do everything properly. Most tax pros who understand small business will save you many times more in taxes than their fee.

Good luck.

Kerry Kerstetter

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- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 10/11/2004 07:35:00 PM Send this post: