Section 179 & Bonus Depreciation
Section 179 & Bonus Depreciation are currently legislated by the Tax Cut & Jobs Act of 2017
Section 179 is a provision in the tax law allowing a deduction, in the year of purchase, for an amount up to the entire costs of qualified property. What is qualified property? A brief description is shown below. This is a complex tax issue. Seek tax advice before making any purchase solely to receive a tax benefit.
Bonus Depreciation: is similar to Section 179. Qualified property varies and the income limitation differs from Section 179.
Legislation could/has/will change these provisions.
Qualifying equipment: Furniture, fixtures, machinery, computer devices, any equipment, tools, etc. used in business. Certain automobiles will also qualify. Certain capital improvements will qualify.
Seek tax advice.
Myra B. Carlisle, CPA