Discover if you’re missing out on some extra cash. Depreciation may be your golden ticket.

Hello, my name is Vince Schembri and I’m the president of WOWzer technologies. Today. I want to continue our talks on “show me the money” as I wish to speak to something that I was reminded of this week. There are business owners who are using personal assets for business purposes but those assets are not on the company books.

As an example, I’m using a laptop computer to record a video for our YouTube channel. And my question is “Is this personal asset, which I am using for business purposes, on my company books? If it’s not, I’m missing out on an expense that I can deduct and therefore pay less taxes as that’s “showing you the money.” In this case, the deduction is called depreciation. What is depreciation? It is the wear and tear of an asset in the use of a business.

In the case of the laptop computer, it has a lifespan greater than one year, as opposed to stationary, which has a life span of less than one year. The laptop computer is depreciated over time, while the stationary is written off. The purpose of depreciation is to provide you with a true cost, which is the true value of the asset at a given time. This gives the business a better value representation on your books.

Computers fall under the category of fixed assets and there are other fixed assets that can also be depreciated. They are furniture, equipment, machinery, vehicles, buildings, etc. The main reason that these fixed assets can be depreciated is that they’re being used in the business for the purpose of generating income. As an example, if the company owns a truck and it delivers goods to its customers, without that truck, there is no way to generate that income.

In the case of my laptop computer, I use it for business purposes in the recording a of video. I can also use it to do all kinds of work on it as well. As such, I can depreciate it and lower my corporate income taxes.

There are fixed assets that are non-depreciable such as land and inventory. In the case of inventory, if the item(s) have lost their value, they are written down or written off, not depreciated over time.

I want you to think about your assets that are personally owned and that may not be on your company books. I would like to suggest that you look at the company asset list and see if they are listed. If they are not and or you have any questions, please contact us for a free financial health checkup. Perhaps we can guide you and help you to get more deductions and expenses on your income statement. This is the statement that has your income and expenses, which is the one that calculates your corporate income taxes.

I hope that’s really helped you and have a great day. I look forward to talking soon, God bless and ciao for now.