Assets are the property, such as ma-
chinery and equipment, you own and use in
your business. You must keep records to verify
certain information about your business assets.
You need records to figure your annual depreci-
ation deduction and the gain or (loss) when you
sell the assets. Your records should show all
the following.
- When and how you acquired the asset.
- Purchase price.
- Cost of any improvements.
- Section 179 deduction taken.
- Deductions taken for depreciation.
- Deductions taken for casualty losses, such
- as losses resulting from fires or storms.
- How you used the asset.
- When and how you disposed of the asset.
- Selling price.
- Expenses of sale.