Business assets used for free services for friends

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- Lee Choquette
  
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posted
13 years ago

Sat, Jan 22, 2011 5:53 PM

I operate a mobile DJ business, playing music at weddings and parties. Sometimes I do a free show for a friend. This is not really advertising, as I'm not expecting to get enough referrals to make it worth it; it's just helping a friend out.

I don't deduct mileage or other direct expenses for these free shows. However, I use equipment whose depreciation I deduct as though the equipment is used 100% in a business, since I don't use the equipment for anything personal: just paid shows and free shows.

Any problem claiming 100% business use despite using the equipment for free shows?

Thanks, Lee

- B
- Bill Brown
  
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posted
13 years ago

Sun, Jan 23, 2011 3:48 AM

Free shows for friends sound a lot like personal use to me.

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- removeps-groups
  
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posted
13 years ago

Tue, Jan 25, 2011 2:29 AM

You have to allocate between business and personal use. If you DJ 100 times a year and 2 are personal, then depreciation is 98% of the total. That is say if you used the asset 100% for business and the depreciation was $100, then because of personal use it is now $98.