Tag: Assets

Assets are the property, such as ma- chinery and equipment, you own and use in your business. You must keep records to verify certain information about your business assets. You need records to figure your annual depreci- ation deduction and the gain or (loss) when you sell the assets. Your records should show all the following.

• When and how you acquired the asset.
• Purchase price.
• Cost of any improvements.
• Section 179 deduction taken.
• Deductions taken for depreciation.
• Deductions taken for casualty losses, such
• as losses resulting from fires or storms.
• How you used the asset.
• When and how you disposed of the asset.
• Selling price.
• Expenses of sale.

Exchanging assets sounds simple.  The process involves a method of payment, noting the amount paid, checking a statement periodically, and of course end of year taxes.  The process sounds simple.  For those of you who are movers and shakers in your community, as your assets grow, so does the process.

To individuals, assets may be their home, savings account, investments, gun collection, etc.  These items appreciate in value.  Other individuals consider their assets to be their truck, boat, ATV, or music collection.  People, these items are not assets.  An asset is something that will make you money.  Either way, it does not matter for individuals.  For individuals, assets (real or not) cost you money.  Assets make you money.  I use to have horses, now I have cattle.  Horses cost me money.  Cattle make me money.

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