The tax term “Section 179” refers to a deduction, similar to depreciation, that allows businesses to deduct 100% of the cost of certain asset purchases. Mechanics Since this post is intended to just be a basic overview, I’ll avoid getting into technicalities. But here are the basics:: A Section 179 deduction can be taken on […]
For tax purposes, what does the term “depreciation” mean?
Q: Can I deduct mileage to a PO box? A: It depends. If you are a home-based business and a portion of your home is used regularly and EXCLUSIVELY for business, then you can deduct any business mileage driven from your home, including to your PO box. If your home is not used regularly and […]
Q: If I list 1099-K income hobby can I list equal expensives as I also buy for my hobby and spend more than I sell? A: The answer is not as simple as it sounds. First, you can deduct “cost of goods sold” (COGS) directly from hobby income — if you have legitimate COGS and […]
What is the Section 179 limit for 2012? Answer: $139,000.
DISCLAIMER: The answers to questions in this segment are intended to be general in nature and do NOT constitute tax advice. Please contact a tax advisor to discuss your unique situation. All of the questions below have come from readers over the last couple of weeks: Q: Do I have to take Section 179 if […]
A reminder that Iowa lawmakers finally came to their senses earlier this year and decided to couple with federal law on Section 179 expensing for 2011 and 2012. This means the Iowa Section 179 limit is the same as the federal limit: $500,000 for 2011 and $139,000 for 2012. But remember, Iowa is NOT coupling […]
Joe Kristan at the Tax Update Blog reminds small business owners that current Section 179 and bonus depreciation limits expire on December 31: The last tax bill of 2011, the 2-month payroll tax cut extension, has no provision to extend the 2011 tax treatment for fixed assets. As things now stand, 100-percent bonus depreciation and the $500,000 Section 179 […]
This article discusses how to coordinate Section 179 deductions with bonus depreciation.
What will the Section 179 and bonus depreciation amounts be for 2012? This article explores that and gives an overview of what “Section 179” and “bonus depreciation” mean.