Section 179 deduction

Discussion in 'Heavy Equipment & Pavement' started by YellowDogSVC, Nov 17, 2012.

  1. YellowDogSVC

    YellowDogSVC LawnSite Gold Member
    from TX
    Posts: 3,756

    Anyone going to take advantage of the last year (possibly) of the Section 179 deduction? I'm seriously considering making a trade and picking up an attachment or two.
     
  2. AWJ Services

    AWJ Services LawnSite Platinum Member
    from Ga
    Posts: 4,276

    I was set to make a purchase but I decided against it. I will take the tax hit this year as I have no faith in the economy next year. I own everything right now and I feel that it is best to keep my money in the bank and have no payments. It some cases it could be worthwhile if you your net was high enough.
     
  3. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    Is this the last year or the last year with the bigger deduction limits that Bush put in? I have never hit those. I am also wondering about the wisdom of taking a truck all at once and then not having the deduction for the next 4 years.
     
  4. TX Easymoney

    TX Easymoney LawnSite Platinum Member
    Posts: 4,071

    I guess it matters most if you have lots of taxable income and don't want to take the tax hit all at once... say 40 or 50 k in profit...
    Problem with waiting or stinging it out over several years is the laws could change and rates or deductions could change, the uncertainty is what I don't like... realize savings as soon as you see the or else they might go away
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  5. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    There is a good chance many deductions will go away or total deductions are limited.

    I think you hit the nail on the head... so many things have been tweaked, or extended and now they are all set to expire. It is hard to make decisions.

    I think everyone just wants to know the rules.
     
  6. TX Easymoney

    TX Easymoney LawnSite Platinum Member
    Posts: 4,071

    Problem being; most guys don't know where they stand until after the accountant work s over the taxes... that may happen in January, after its too late...
    I don't want to buy a truck I don't need or cannot afford otherwise...
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  7. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    Well, I use QuickBooks so I know where I am all the time. I do not use an Accountant any more. Over the years I have learned a whole lot and I am no longer a partnership so I do not have to file the 1065 K-1 form.
     
  8. TX Easymoney

    TX Easymoney LawnSite Platinum Member
    Posts: 4,071

    I use QuickBooks also, makes it so easy to download bank statements and credit card charges...I try and reconcile the books each month but get behind in October . I like to match statements with what is in QuickBooks...I really need a bookkeeper so I can be out selling or working... like you, I've gotten really efficient at it and pains me to see anyone else monkeying around with it taking twice the time I do...
    Posted via Mobile Device
     
  9. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Posts: 7,961

    Not to hi-jack the thread but I can reconcile two CC statements, one bank statement and savings account in less than an hour. Trick is down loading and matching almost daily. Many times I can go to the account, hide anything not in the statement period and hit check all and I am done.

    I have many of the items mapped to Turbo Tax too. I need to do a little research about mapping vehicle expenses separately so I do not have to manually adjust as much.

    Now moving back to this topic, I am thinking that if I took mileage ( which you can not do if you depreciate) that I would be much better off in the long run. So I am thinking 179 and deprecation is bad if you are going to keep a truck longer than 5 years.

    Yellow Dog is talking skid steers or something so I am sure he has to depreciate those.
     
  10. TX Easymoney

    TX Easymoney LawnSite Platinum Member
    Posts: 4,071

    My accountant want s us to personally buy equipment and lease it....back to company ...I am concerned about the hassle factor
    Posted via Mobile Device
     

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