USA equipment depreciation question

[spdhillon]

hi ,

we are trucking company s-corp and have some equipment that we bought on another llc . can i depreciate that equipment against income from trucking s-corp ?

 

[kirby]

For trucking s-corp to depreciate equipment, IRS requires trucking s-corp to be the owner of the equipment.

 

[GPTTroll]

GPT Answer:

"I am not an accountant, but it seems that if the equipment is owned by a separate LLC, you may not be able to directly depreciate it against the income of the S-corp.

You might need to lease the equipment from the LLC to the S-corp, and then the S-corp could potentially deduct the lease payments as a business expense.

It would be best to consult with a tax professional or accountant to determine the best course of action for your specific situation."

[disclaimer]
I am not an accountant. I posted your question to GPT-4 and it generated the above response. I am just trying to understand how well these models work. FASAB Handbook top page references: 2633, 1530, 1555, 980

 

[LLCOOLES@72]

hi ,

we are trucking company s-corp and have some equipment that we bought on another llc . can i depreciate that equipment against income from trucking s-corp ?

If you currently own the equipment you are allowed to take depreciation on it. You need to determine the life cycle of the equipment. Can you depreciate it over a 5-7-10 year period? Then you need to determine if you will use straight-line depreciation. Say you paid $10,000 for the equipment. You can depreciate it over a 5 year period. This means you can take $2,000 of depreciation expenses over that 5 year period. If you use a different type of depreciation schedule, your depreciation amounts will be different. Hope this helps you out.