Incorporating: how to write off equipment purchased prior to incorporation

[emjoyner]

I live in GA, and will soon be incorporating a photography business. To get started this year I purchased quite a bit of equipment, and now need to understand if I can write any of it off after I incorporate. If so, how would I go about doing this? Thanks.

 

[abezon]

You can depreciate the equipment, with the date placed in service being the date you began business. This may be before or after you incorporated. If the equipment was personal use stuff, you depreciate based on the fair market value when placed in service. Otherwise, use the purchase price.

You write off the costs of incorporation as startup costs & amortize them over 60 months.

I suggest a tax pro for at least the first year.