1 Discuss at least three 3 pros and three 3 cons for convert

1. Discuss at least three (3) pros and three (3) cons for converting personal property to business use, and recommend at least two (2) implementation strategies that would increase the depreciable bases used to calculate depreciation expense. Provide support for your recommendation.

2. Imagine that you have started a business and have purchased business assets, such as computer equipment, vehicles, and a building. Suggest at least two (2) implementation strategies to help you ensure that you are calculating the correct amount of depreciation. Provide specific examples of such strategies.

Solution

Pros for converting personal property to business use

1) The personal property will greatly help in reduced the needs of acquistion to greater extent and also benefit by lowering or reducing your tax bill.

2) The general business are started with the initial phase in very less amount of funding that can be put to a great use if we are able to save money on other areas like putting office in some story or apartment instead of purchaing some lavish building

3) The extra money gathered by brining the stuff from home will help in providing better boost to your company in terms of funds and other stuff

Cons:

1) The price of the goods will be deprecated after the usage of products and it must be accounted from time to time

2) Some goods will not be having any re-sale value that must also be accounted, example- just go down the lane by 5-10 years, no body will be buying that old cell phones now since they are not having any features of the today generation smart phones

3) The buliding or home converted into office will also be damaged at the time of purchasing including damaging to wall paint and other stuff

Implementation Strategies

1) Mixed-use assets. If you think of using some personal assets for the business, then you must need to keep the track of time regarding how much time product or service is used for personal use and business use

2) For depreciation purposes, we must know the original buying price from the market and fair market value after using the product for household activities in order to carry the deprectiation since the deductions will be computed on these models

3) If you\'re conducting business as a sole proprietorship, there\'s really no trick to converting your personal assets. All it takes is to start using them in your business.