Writing off / Depreciating DJ Equipment in taxes?

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Posted by discobiscuit on May-21-2008 19:17:

Writing off / Depreciating DJ Equipment in taxes?

hey guys i am now officially a full time dj and (of course) am saving all of my recepts for batteries, cords, speakers, music, etc.;however, i purchased my cdj1000's and djm800 at the end of 2006. i was wondering how i could incorporate these in my tax deductions for 2008. can i depreciate them over 5 years and just take the 18 months (oct2006-may2008) as a loss? start depreciating them from month 18 on through month 60?

thanks in advance,
bisco

Posted by richg101 on May-22-2008 09:42:

in the uk you have at least a few years where you can claim back for equipment. 'retrospective expenses tax deductions' would be a good google search...

Posted by discobiscuit on May-22-2008 10:17:

Thanks I'll look into that

Posted by princesultan on May-22-2008 20:37:

in canada, you would depreciate using a declining balance method depending on what class the capital asset (in this case your dj equipment) fell into.

i'd imagine that you'd be depreciating at a rate of anywhere between 20%-30% (probably 30%).

so if your dj gear cost 1000$ and your rate was 30%, 1000*30%=300, you'd be able to deduct 300$ from your income that year.

The next year, the balance remaining to depreciate would be 700$ (1000$-300$) and you'd depreciate using the 30% rate based on that 700$ balance.

find out what rate you must use to depreciate with first.

Posted by DJ RANN on May-23-2008 00:40:

quote:
Originally posted by richg101
in the uk you have at least a few years where you can claim back for equipment. 'retrospective expenses tax deductions' would be a good google search...

not quite true (for the UK at least), you can claim tax deductions for them as tools to perform your trade (like a plumber buys spanners or a beauty therapist buys a massage bed etc). You get 40% of the value as a deduction for the first year, 25% of the remaining (i.e. less the 40%) the next years and 10% of the remaining for the year after that.

The only problem is that you bought them well before you established the business and your receipts will show that. Don't know if it's the same for the states......?