Question: Dear Tabby, Recently, I opened a tanning salon. To save money, I'm trying to complete my tax return on my own this year. I think

Dear Tabby,

Recently, I opened a tanning salon. To save money, I'm trying to complete my tax return on my own this year. I think I understand how to report all the receipts and payments properly using a Schedule C, but I'm having an issue with this thing called "cost recovery." I was hoping you could explain it more to me.

I rent the space I use for the tanning salon. This year, I purchased 10 tanning beds, three computers, and various pieces of furniture for the salon.

I heard that I might be able to deduct all these items I bought, but then I saw I might have to use cost recovery? I also saw something about bonus depreciation. I need some clarification on what my options are for deducting these items I purchased.

Thanks!

Tanning in La La Land

In order to provide sound advice, you must include the tax code section(s) that you examined to arrive at your conclusion.

IRC Section 167 IRC Section 168d Regulation 1.167(g)-1 IRC 179

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