Thanks to the
section 179 expense deduction
, any investment in a fixed asset for business use can be deducted come tax time. Best of all, it can all be deducted at once instead of having to wait year after year to get the big benefits. In order to take advantage of the section 179 expense deduction, however, you will need to make sure that you are following the regulations and laws when it comes to using this type of deduction. In order to do that, you will need to talk to your accountant.
Understanding Depreciation
When it comes to this type of deduction, you will need to know how depreciation works. With taxes, depreciated is a deduction that will allow you to recover part of the cost of your property. Typically this will be over time. Many of the big ticket items you buy for your business, like vehicles, buildings, furniture and machinery, will depreciate over time, or lose value as they age. When you make a purchase, assuming you buy an eligible type of property, you will be able to claim this as a deduction on your taxes using the section 179 deduction.
Using This Deduction
Though the section 179 deduction probably sounds great to you, not all types of property will be eligible. For instance, you can only use the 179 deduction if you have used this property for your business. For instance, if you buy a car for your business, in order to use the section 179 deduction, the car must be used, at least 50% of the time, for your business duties. You will also only be able to use this deduction if the property is expected to be used for more than a year. Finally, the property will have to have a useful life. This means that, at some point, the property will no longer be of use to you.
The only way for you to know if your property will be eligible for this type of deduction is to speak with your accounting professional. You will also find that there are companies out there that will specialize in these types of deductions. This may be your best bet when you are looking to get the most out of the purchases you are making for your company.
URB:
When looking for information on the section 179 tax credit, reach out to Walker Reid Strategies at (800) 662-179D or online,
