title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Monday, February 13, 2006
 
Sec. 179 Limits

Q:

Subject: Section 179 Upper Limits

Hello--
 
I have the opportunity to purchase (and take delivery) of two qualified pieces of equipment.  One costs $79,000 and the other $133,000.  Is my 2005 deduction limited to the $105,000 (plus accelerated depreciation) or is it $79,000 + $105,000 = $184,000 (plus accelerated depreciation)?
 
Thanks.

A:

The $105,000 limit is per tax return, not per asset.  You could have dozens of items totaling $105,000 or just one.

As I have described several times, a 1040 can claim $105,000 in Section 179 and a C corp can also claim up to another $105,000 on its 1120.

If you are spending this much money on business equipment, you are being very irresponsible by not working with a tax pro who can assist you and ensure that you don't screw things up.

Good luck.

Kerry Kerstetter

Labels:


- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 2/13/2006 04:58:00 PM Send this post:

Powered by Blogger