If you are a taxpayer who is in business or trade, you can often save money be choosing a section 179 tax deduction. This deduction will allow any business to immediately deduct the cost of personal property that has been purchased. For instance, if you buy office furniture or some type of machinery that is used in business, you can use this deduction.
What You Should Know About Section 179
In order to use an asset for a section 179 tax deduction it must be used for business at least 50-percent of the time. If it is used for business between 50-percent and 100-percent, you can claim the deduction based on the cost of that percentage. For instance, if you are using your new business machinery for business 75% of the time and 25% for personal use, you can deduct that 75%. This deduction will lower your taxable income which will save you money.
Do Vehicles Count?
Many people will wonder if they can use vehicles as a section 179 deduction. Yes, you can but you should know that it is limited so many people will choose to use this type of deduction on other items. The only exception to this, when it comes to vehicles, is if you choose to buy an SUV that has a weight of more than 6000 pounds. In this case, you can claim up to $25,000.
A Great Deduction for Business Owners
If you are a business owner, the section 179 deduction is one of the best and most lucrative out there. In addition to all of the above, the deduction will help you to save on self-employment tax. As you can imagine, this can really help you as you go into tax season this year but you won’t be able to take advantage of it unless you choose the right accountant. There are many accountants that can help you with this type of deduction out there, but you want to make sure that you can count on them to give you the right advice. As with anything, don’t just choose the first accountant you come across, make sure you fully research and understand what goes into this deduction. A good accountant will explain all of that to you, and more.
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Are you thinking of a section 179 deduction? If so, contact Walker Reid Strategies. They can be reached online at or by phone, (800) 662-179D
