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Tax differal by making capital asset purchases?


I am a new small business owner (LLC) currently working out of my basement, and am interested in purchasing some office space (yes, do not want to through money on rent). Is the purchase cost tax differed until I sell the asset (may be in 10 years from now?) Or do I have to use after tax dollars to buy the office space?

subject should read as: Achieving tax deferral through capital asset purchases?

No. It's not tax deferred. You can deduct depreciation each year though.

huh?.. if you pay rent you can deduct the total of the rent in the year you pay it, if you own you get to deduct the depreciation ( usualy the cost of the purchase over 40 years) and the actual costs of maintaining the property that year. my advice? buy the property personaly and have the llc pay you rent. this will be unerarned income ( not subject to SS save almost 15%)

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