Let’s say that you have narrowed the purchase of your business desk to either an antique or a regular desk. Each desk sells for $5,000. Which desk gives you the best business result? Is the difference worth thinking about?
First, some relatively recent events have pretty much turned the antique desk into just another asset, eligible for section 179 expensing and depreciation that produces the same business deduction results as a regular desk. However, the similarity in this equation ends with deductions.
There can be a huge difference in financial results at the time of sale. For example, in 10 years,
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the antique desk could increase in value to $15,000, whereas
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the regular desk could decline in value to $500.
To see the true financial results, you need to look at the after-tax numbers. Let’s say you are in the 35% income tax bracket and the 15% capital ... Log in to view full article.