"Rita Ä Berkowitz" ritaberk2O04 @aol.com wrote in message
...
Randy Howard wrote:

The answer to his question is *NO* he can't. If he bought this
equipment for personal use, which he did, then he is stuck.

Incorrect. If he decides to formulate a business after the
initial purchase, he can transfer the assets into the company
and treat them as any other capital equipment expense made after
the formation. The IRS doesn't employer mind readers yet,
AFAIK. Whether a sole proprietorship, partnership or a
corporation, you can acquire assets prior to the creation of the
entity and transfer or sell them to the 'business' at a later
time.

Of course he can do *anything* if done correctly and properly worded, but
he
is walking a fine line with this one. He really needs to get a plan
together and figure out what he wants to do then take this to a competent
accountant. Going by the OP's initial post of what he's trying to
accomplish would be more of a detriment to him and possible create more
hardship. For instance, just depreciating the equipment. Was it bought
last month, last year, or 10-years ago? And as I said earlier, " If he
bought the equipment to be used for his "photography" or "eBay" business
than it is figured into the equation. Of course, he will also be able to
back up all claims if/when he gets audited." In his case as described,
the
benefits don't outweigh the risks, so I'll say stick with no.


If I were to start a photography business, I could "sell" my photographic
equipment to the business, but not at the new price....I would have to price
it at the current market's used rate....I could however, begin depreciating
it starting at that price.