How to Convert Business Equipment to Personal Use

Office equipment is often sold or claimed for personal use.

Business equipment is often subject to updating for the sake of keeping up with business protocols. Sometimes, machinery is no longer capable of functioning in its designed capacity. In other cases, the equipment is simply no longer needed by the business. Employers are often willing to sell items for personal use, and business owners have only to adjust their tax claims for the retired goods.

Instructions

1. Offer to purchase a piece of business equipment you want from your employer, or simply take it out of service from your own business. Bring the item to your home to use as a personal item.

2. Replace all equipment that is needed by your business to make up for the items retired for personal use. Buy upgraded computer hardware or other machines and accessories to remain current with all web and business needs.

3. Stop claiming the depreciation on all business equipment that has been relinquished for personal use. There are no IRS deductions available for using a former trade tool as a personal item. Claim the tax deductions provided for the purchase of new business equipment used to replace retired items, and claim the depreciation on these goods as tax regulations allow.

References

• IRS: Overview of Depreciation -- Retired From Service