Trailer Purchase
I am going to purchase a trailer for about $1000. I will use it mosty for my rental property, ie lawn care etc.. I will use it on rare occasion for personal use. Would this be considered a tool and would it have to be expensed over a certain period of time? Can I purchase it from within my rental company?
The trailer has a useful life over 1 year, so it should be capitalized and depreciated over the useful life of the trailer under IRS rules. I believe this would have a useful life of 5 years for federal tax depreciation. Go to www.IRS.gov and get teh Form 4562 instructions for further details. This will direct you to the appropriate IRS publication for additional details on this. Using this for personal use could affect your deductions.