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100% Tax deduction? to good to be true?

Discussion in 'Business Operations' started by G. Ramey, Dec 9, 2010.

  1. G. Ramey

    G. Ramey LawnSite Senior Member
    Posts: 376

    I received an email from Wright that claimed I could completely write of the cost of a new mower on my 2010 taxes by useing section 179 on my returns. I Googled section 179 and read about it, but I want to hear someone elses interpretation of it. Has anyone used section 179 tax deduction before?:confused:
  2. T.E.

    T.E. LawnSite Senior Member
    Posts: 799

    Yes I've used the deduction. It takes the whole amount of the purchase in one tax yr, instead of depreciation over several yrs. Two things....1) can't create a loss with it. 2) You will have nothing to deduct the next tax yr as far as that piece of equipment.

    Hope this helps.
  3. Richard Martin

    Richard Martin LawnSite Fanatic
    Posts: 14,700

    I've been doing it since they implemented it.
  4. grassman177

    grassman177 LawnSite Fanatic
    Posts: 9,795

    we do it and use it to our advatage and replace something every year. so far so good, and we keep upgrading our equipment this way too so we have fewer breakdowns.

    talk to an accountant and or tax person to find that sweet spot for your business and spend it my man!
  5. KS_Grasscutter

    KS_Grasscutter LawnSite Gold Member
    Posts: 3,332

    Yep, use it here too.
    Posted via Mobile Device
  6. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    It's a business expense, hence it is tax deductible.
  7. domain311

    domain311 LawnSite Member
    Posts: 177

    Man what have I been missing? I need a new accountant I think... I just bought 2 mowers, but financed them...still possible to use 100%? If so, that's pretty damn exciting and those things just cost me a lot less...
  8. daveyo

    daveyo LawnSite Senior Member
    from N.J.
    Posts: 907

    You definitely need another accountant. Two things that are extremely important accountant and bookkeeper.

    You can't write off 100% of something you haven't paid for, talk to another accountant.

    Remember there are two types of accountants number crunchers and tax advisers go with the latter.
  9. domain311

    domain311 LawnSite Member
    Posts: 177

    Thanks for your input.
  10. dhardin53

    dhardin53 LawnSite Senior Member
    Posts: 711

    Its different for everyone. But for me I like my income and expenses to average out and flow from year to year. If you take all the cost of a new say $9000 mower within one year it has the potential to end the year looking like you lost money or have a dip in your income in the eyes of the IRS. Hench a red flag. If you spread it out over 5 to 7 years major purchases will not drastically affect your reportable income and expenses. The only true down side for extending your new purchases is if or when you dissolve your business. You will be hit hard when you close out that years taxes for all unfinished amortization.

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