What Business Asset Information Do I Need to Prepare My Business Tax Return?

Question: What Business Asset Information Do I Need to Prepare My Business Tax Return?

Business assets are important to business taxpayers; asset records provide information necessary for depreciation expense deductions. Keeping complete and accurate records on business assets can save you money at tax time. Here are the records you need to keep:

Answer:

For assets purchased during the tax year:

• Cost of the asset, including sales tax, costs for delivery, setup, training, accessories
  
• Description of the asset
  
• The date it was placed into service at your business
  
• The percentage of use for business purposes

For assets sold during the tax year:

A description of the asset

The date it was sold

The sales price

Any selling costs, such as broker fees or advertising expenses

Accumulated depreciation on the asset from the date it was purchased (your CPA will need to furnish this information)

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