how much can i deduct the first year

Discussion in 'Business Operations' started by Tim Louis, Dec 4, 2004.

  1. Tim Louis

    Tim Louis LawnSite Member
    Posts: 41

    I'm thinking of buying a new mower. I only do this part time so my income is only around $6000. I'm looking at whether to get a used or new the used has 1200 hrs and about 3 smaller problems for $2800 the new is of course new and is $5700 with tax included. How much am I able to deduct on this years taxes with a new one compared to an old one? is there a percent you can deduct and then you have to depreciate in coming years or how does that work?
  2. mtdman

    mtdman LawnSite Gold Member
    Posts: 3,137

    If you do a section 179 deduction, which you should now that Bush extended the limits, you can deduct the entire amount all at once. As long as you don't show a negative income, or net loss for the year. You can also deduct part of the cost this year through 179, and the remainder the following year. It looks like either way, as long as you make more than the deduction, you could do a 179 with either mower.

    I always use 179 deductions for equipment. There are certain items, called listed items, like cars, that you must depreciate. All else is fair game.

    As always, consult an accountant.
  3. Tim Louis

    Tim Louis LawnSite Member
    Posts: 41

    hey thanks for the information I sincerely appreciate it, i've never heard of a sch 179

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