Do I list a utility trailer as an asset that depreciates or just as equipment purchased for a business?

[Debstax2020]

I have a client that purchased a 2014 BNDR enclosed trailer to transport his equipment for his band. I need to know how to file it. Do I list it as a vehicle since it has a VIN number or list it as an asset that depreciates or just equipment purchase? 

[dkh · Accepted solution]

asset that depreciates

[Debstax2020]

Thank you.

[qbteachmt]

"or just equipment purchase"

$300?

$3,000?

$30,000?

VIN just means, titled and registered. Not Automotive Vehicle, by definition.

[dkh]

Welcome.  Happy taxing!

[jeffmcpa2010]

At least partly it depends on the cost, and whether the client has adopted a policy (and complied with the policy) which set's a lower cost limit for capitalization of fixed assets which complies with the IRS de-minimis safe harbor provisions at reg. 1.263 (a)(1)(f).