– Unit 4 Discussion: Business Use Assets and Depreciation

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– Throughout this course, many discussion opportunities come up where you need to respond to other people’s opinions and comments. Address the Discussion topic after you have completed your reading.

Business Use Assets and Depreciation

John paid $300,000 for a very old guitar that belonged originally to an accomplished musician. Since John is also extremely talented and is blessed with an amazing voice, he not only believes this guitar to be a great investment, but intends to play it at local eating and drinking establishments. John has now asked you whether he can deduct this guitar as a business use asset.

What would you advise him, and why or why not?

Would there be any limits to the deductions?

Provide specific details in your response to support your opinions.

Please review the Discussion Board Participation grading rubric under Course Resources. This is important information that will ensure that you earn maximum points.

Your postings should be qualitative and provide substantive depth that advances the Discussions.

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