Wendy is a self-employed certified financial planner who started her business in 2018. During the year, she purchased a $500 computer and a $250 desk. She also paid $6,000 in legal/incorporation fees and spent $12,000 for a new roof for the office building she owns. Which purchase (s) can she expense in 2018 without limitation?

Question

Business

Cassius Sullivan

2 March, 22:13

Wendy is a self-employed certified financial planner who started her business in 2018. During the year, she purchased a $500 computer and a $250 desk. She also paid $6,000 in legal/incorporation fees and spent $12,000 for a new roof for the office building she owns. Which purchase (s) can she expense in 2018 without limitation?

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Nasir Odom · Answer 1

Computer and desk she can expense without the limitation.

Explanation:

As per the rule of IRS, small business assets purchase states the assets value should be below $2500 could be shown as a business expense

The corporation and legal fees is in relation to the normal business activities such as filing of the returns, which are allowable. But in the question, it is not specified so it is assumed that it is in connection with the roof of office building. Therefore, not allowable.

Hence, the allowable expense in the year 2018, without limitation is the desk and computer.