Has anyone used Tax Code 179

Discussion in 'Business Operations' started by DixieFerris, Dec 4, 2005.

  1. DixieFerris

    DixieFerris LawnSite Senior Member
    Posts: 440

    and written off a big truck for their business this year?
     
  2. DLS1

    DLS1 LawnSite Bronze Member
    Posts: 1,619

    Use the search feature on this site and search for "section 179". Plenty of reading.
     
  3. DixieFerris

    DixieFerris LawnSite Senior Member
    Posts: 440

    thanks buddy I appreciate the help
     
  4. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Posts: 1,847

    I will use this feature from time to time but keep in mind, all you are doing is postponing your tax liability. No matter what, Uncle Sam is going to get his cut of your money; its just a matter of when.
     
  5. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    Dam ain't that the truth
     
  6. mtdman

    mtdman LawnSite Gold Member
    Posts: 3,137

    You cannot use section 179 to depreciate a truck. There are certain "listed" items that cannot be taken with 179, including vehicles, farm tractors, computers, etc. Ask an accountant.

    Other than that, 179 is a great way to write off equipment all at once. On one hand, it encourages a business to spend $$ on big items every year to get the deduction. On the other, if you can't do that every year you have to realize what the difference is going to be in years you can't.

    And Mac, Uncle Sam can't get a cut of what you don't have. Spent $$ is spent $$, the best part is Uncle Sam can't get his hands on it.
     
  7. olderthandirt

    olderthandirt LawnSite Platinum Member
    from here
    Posts: 4,900

    You heard the saying that theres only 2 sure things in life "death and taxes" theres a reason for the saying. :p He can confiscate and put up for auction anything that the spent $$$ was used to purchase.
     
  8. MacLawnCo

    MacLawnCo LawnSite Bronze Member
    Posts: 1,847

    I dont want to go too indepth here, but this is the gyst:

    There are things call future tax assets and future tax liabilities. Google them if you really want to know. Section 179 is one of the ways to create a future tax liability. So, my previous comment stands.
     
  9. mtdman

    mtdman LawnSite Gold Member
    Posts: 3,137

    I think what you are saying is that by taking all of a deduction now instead of depreciating it over many years is that you are going to owe more next year than you would have if you depreciate it. While that is true, you get the benefit of taking it all at once. 179 simply allows you to take an item you'd normally depreciate as a one time expense. And it makes things a bit more simple. While you can argue that taking all of the deduction now means uncle sam gets more next year, I can also that deducting it all now means uncle sam gets less this year. Half dozen of one, 6 of another.
     
  10. DuallyVette

    DuallyVette LawnSite Gold Member
    Posts: 3,296

    I'll deduct it today...I may be dead tomorrow. So far, after 28 years, I keep finding new things to buy to deduct...go figure.
     

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