Are you a business owner? If so, you may be able to benefit from the section 179 tax deduction. Instead of buying property and having to allow it to depreciate over several years, with the section 179 tax deduction, you will be able to deduct the purchase price of the item in the year it was purchased. There are some section 179 deduction limitations that are in place, but as long as you are working with a trusted accountant and your property meets all of the requirements, you will surely be able to use the deduction.
What You Need to Know About the Section 179 Tax Deduction
In order to know if you can really benefit from the section 179 tax deduction you will need to speak to an accountant. However, you can get a good idea about the process by continuing to read. Typically, in order to qualify for this deduction, the property you purchase must be used for your business at least 50% of the time. That means that if you buy a new computer for your business, you can use the section 179 tax deduction only if it is used for your business over half the time. If you are using it for personal reasons most of the time and for business part time, you won’t be able to use the section 179 deduction. You should also know that currently there is a $125,000 limit on what you can deduct and in order to take this deduction, your business income must be at least the same amount as the deduction.
Property That is Eligible for the 179 Tax Deduction
You will find that there is a lot of different types of property that is eligible for the 179 tax deduction and property that is not eligible, as well. For instance, you will find that vehicles can be used for this deduction. However, with vehicles, there are section 179 deduction limitations. No matter how much you spent, you can only deduct $11,160, even if your vehicle cost more than that. Other types of property that is eligible includes office furniture, machinery and airplanes. Things like barns, pools and warehouses are not eligible. In order to find out if your purchase is eligible for the section 179 deduction, contact an accounting firm.
Be the first to like.