My wife and I have started an LLC. the LLC is run our of our house, it is a machine shop. We file our taxes joint-married. She is 51% owner I am 49% owner.
I work a day job (for now).
We have purchased equipment for the LLC, lets say $20k worth. Some is consumables (cutters, grinding disks, band saw blades) some is actual equipment. No single piece cost me more than about $3,000.
Lets say I make $100k at my day job. From what I have read, the capital equipment will be depreciated? or is it a low enough dollar amount to be a straight write off?
The lifetime of the consumables seems to put those items into a different deduction category...operating expense? We have very little organizational expenses, but I am guessing Phone bill (under the business name), website count?
To date we have done about $1,000 in business.
how do I know if the equipment (all used) gets depreciated/amortized or just written off?
if it is to be depreciated/amortized: how do I determine the schedule for an older machine which is used?
as a pass through, does all of the business expenses (which is equipment and which will out weigh profits this year) get deducted off our personal income tax?
I have read that the my 'day job' income will determine how much benefit I can get from the LLC expenses/loss, where do I find this information?
Thank you ahead of time, and if there is a good link for this sort of information, please point me that direction. I did some searches but didn't find much about how LLC loses affect, or are related to, day job income.