What's a business asset? A business asset is property your business uses to make money. Examples vary by industry, and include things like ladders, drills, generators, computers, software and display cases. Business assets are all the things you need to do what you do.
Why is listing your business assets important?
One reason is that listing your business assets helps when you are applying for a loan. If you are self-employed and trying to get a mortgage or business loan, getting one can be tough. Listing assets shows lenders that you have invested in your business and that your business has value.
Another reason is that when you list your business assets, you'll pay less taxes. Tax code permits depreciating the assets you use to run your business. Depreciation helps you recover what you paid for the asset over time, as you use it for your business, by taking a depreciation deduction.
Tax code for depreciation is complicated. Tax code has asset classes, asset lives and a number of different depreciation methods.
If your business isn't listing and depreciating assets Eastern Shore Tax & Accounting LLC can help you with your asset list and determining the amount of the depreciation deduction you can take on your tax return.
If you own a small business and haven’t kept up with your bookkeeping, we can help. We’ll prepare your bookkeeping for the year, prepare a Schedule C for your business, your personal tax return and help you set up a system to keep up with your bookkeeping in the future.