Depreciating Assets and Your Bulk Vending Machine Company

littleboyvendking What does depreciating assets have to do with your bulk vending machines?  Plenty, but it’s not all bad!  Depreciating assets can really help you at tax time, as my accountant has often discussed with me.

I am NOT an accountant and am not giving financial advice in this article, but since I have written in places about your vending machines being income-producing assets, I wanted to mention the depreciating assets side of it too.

Its not that your bulk vending machines are depreciating necessarily to you, but as with any equipment, the equipment wears out (depreciates) with time.  Thus, the term “depreciating asset”.  If you think about it, you are replacing globes, mechanisms, chute doors, or other parts as they get broken on your vending route.  Over time, it stands to reason that effectively a bulk vending machine can be completely written off because its effective age has reached the point of no more use in the business or to the individual.  This may or may not be the actual case in use in the business, but for tax purposes, the asset has reached its end and you have a systematic yearly deduction for the expense. 

This is the benefit of a depreciating asset for you the business owner.  Contact your accountant and have them explain the tax benefit depreciating assets can be to you.  Even though I have talked about depreciating assets in the context of bulk vending, it applies in many other businesses.  I encourage you to really understand this area as a business owner.  Depreciating assets carry several important rules to be utilized properly, so please seek professional help to fully utilities their use.

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