title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Sunday, June 05, 2005
 
Section 179 For Phone System

Q:

Subject: May I ask you a quick tax question about section 179?
 
Please advise me on your thoughts regarding the purchase of a new business telephone system and being able to utilize section 179 for a tax break on this purchase.  We are debating at our company on whether you can write off some of the purchase expenses or not…I thought I would ask an expert.

Thanks,

  

A:

While buying a new phone system would possibly be eligible for Section 179 expensing, whether you can or cannot actually claim it depends on various other factors. 

These include:

The total cost of new equipment placed into service during the tax year; i.e. $420,000 for 2005

Whether there is a net profit for the year, because Section 179 can't create or add to a net loss. 


You really need to be working with a tax pro who can analyze your figures and give you advice based on your actual numbers.

Good luck. 

Kerry Kerstetter

 

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- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 6/05/2005 08:57:00 PM Send this post:

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