Depreciation

[tonia2021]

Client has had a personal hobby for a few years. No income was earned. However, this hobby has turned into a legitimate business in 2009. Can the equipment she purchased prior to 2009 be depreciated now that she is in business? If yes, do you still use the purchase price of the equipment (even if it's 2 years old). Since this equipment is being placed in service this year (even if she has owned it for 2 years) does it qualify for Section 179 accelerated depreciation?

[ChEAr$]

Client has had a personal hobby for a few years. No income was earned. However, this hobby has turned into a legitimate business in 2009. Can the equipment she purchased prior to 2009 be depreciated now that she is in business? If yes, do you still use the purchase price of the equipment (even if it's 2 years old). Since this equipment is being placed in service this year (even if she has owned it for 2 years) does it qualify for Section 179 accelerated depreciation?

Start depreciation at fair market value and no to section 179.