capitalquestion
Feb 16, 2009, 02:38 PM
I am doing taxes for an LLC. There was a capital lease for a piece of equipment that began this year. The lease would run for 7 years with a buy out of $1.
I need help understading where I would deprecite this on the tax forms. The only thing I can find is depreciation of assets. Is this considered an asset? If so, the software is asking me for the cost of the equipment. How should the cost be figured? $42,000 was the initial down payment on the equipment on 8/15/2008 with $21,000 as a monthly payment for the next 7 years.
Thanks so much. : )
I need help understading where I would deprecite this on the tax forms. The only thing I can find is depreciation of assets. Is this considered an asset? If so, the software is asking me for the cost of the equipment. How should the cost be figured? $42,000 was the initial down payment on the equipment on 8/15/2008 with $21,000 as a monthly payment for the next 7 years.
Thanks so much. : )