Question

1. What are the rules related to a section 179 deductions?
2. The allowable limit of the 179 deduction will often fluctuate because of Congress action (eg, the limit increased to $1M due to the TCJA Act). Why would the allowed deduction change so frequently through the years?
3. Why would an individual decide to take this deduction and discuss some reasons why it would not be advantageous?

Answer 1

Section 179 of the u.s Internal Revenue lode is an immediate expense deduction that business owners can take for purchase og depreciate business equipment Pretect instead of capitalising and depreciating the anet over a persod of time. Section 199 deduction can can be taken it piece of equipment is puerehased o financed and full amount of purchase price ls eligible for deduction. This section allonne businesses to lower their clettent year ta rather than capitalizing. Section 179 is united to a maximum deduction o $1040000 and value of property to $25 90000. tax tase Manicity 5/5 =

Section 119 expense deduction is limild to such items as cars, office equipment, business machinery and computers. The speedy, deduction can provide substantial, tar relief for burinen oueners neno are purchasing started equipment, Section 119 of the Tax code and purchase práce must be neithin dollar aucount rangee allowaure by the code. in Property must be placed in service during the tar year for which deduction, is being claimed. Equipment covered by Section 119 deduction might also qualify for bonus depreciation nehich further reduces business auner's tar bill. Equipment, vehicles, software purchased under seetion 179 met be used for business purposes more than 50% of the time to quality for deduction 6/6 =