Section 179 Tax Deductions
Since 1986, Michael J. Smeriglio has served as a certified public accountant in Cos Cob, Connecticut. Michael J. Smeriglio has helped numerous business owners understand elements of the tax code and has written an educational piece on Section 179.

Designed to support small businesses, Section 179 of the Internal Revenue Service Code enables company owners to arrange for a single-year depreciation deduction for particular expenses. This is in contrast to the previous rule for such deductions, in which the depreciation would need to be spread over the life of the item.

An item of property may qualify for Section 179 deduction if it is both tangible and depreciable. “Depreciable” means that the taxpayer can recover costs associated with the physical deterioration or ultimate obsolete nature of the item. Such property must also be actively used in business operations and be placed into use in the year of its purchase.

A Section 179-eligible item may be any type of equipment, including business vehicles and office furniture. The code once excluded real property, though recent changes have enabled business owners to take deductions on qualified improvements.
Section 179 Tax Deductions
0
8
0
Published:

Section 179 Tax Deductions

0
8
0
Published:

Creative Fields