Question

" Using the Section 179 deduction increases the deduction in the initial year, but leaves smaller...

" Using the Section 179 deduction increases the deduction in the initial year, but leaves smaller deductions available in future years. Section 179 does not change the total deduction of the asset over multiple years. It changes the timing of the deduction, putting a larger deduction in the initial year, leaving smaller deductions for later years (Section 179)."

So why is it that a business would rather have the larger 179 deduction in the initial year?

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Answer are highlighted in yellow: Solution: Main Reason: a) To Avail the equal tax deduction Because, section 179 allow the business to avail the tax deduction of amount allowed under 179 Generally it happens because of the following other reasons: When Business is estimating a large amount of taxable income in the tax year In this case, to avoid a larger tax bill, business would prefer 179 deduction on eligible asset purchases Other Reasons:b) during tax year. c) When Business estimates the larger depreciation of asset in the intial year, may be due to uses or Change in Frequent technology In this case, to avoid carrying a large cost on the balance sheet, business would prefer 179 deduction on eligible asset purchases during tax year

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