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Section 179

Discussion in 'Business Operations' started by tglover430, Jul 27, 2004.

  1. tglover430

    tglover430 LawnSite Member
    from Alabama
    Messages: 5

    I am just starting a lawn service on the side and have a question about Section 179 before I meet with my CPA. I have looked through this site but can't find any answers on whether or not I can section 179 the cost of my new mower even though I may show very little business activity this year since I am starting late. For example, if my business only shows $3,000 in total activity this year can I still section 179 the complete cost of my $7,000 mower on this years taxes if I only used it for the business?
  2. tglover430

    tglover430 LawnSite Member
    from Alabama
    Messages: 5

    I know I am a newbie here but I really appreciate the expertise on this site. Bruce (CPA) - Any help?
  3. lawnjockey51

    lawnjockey51 LawnSite Member
    Messages: 132

    According to what I have read, if you are starting a business in 2004, any capitol expenses, truck, equipment, etc., that would have to normally be depreciated over several years can be used as a one time deduction (Section 179) ... up to $102,000 in 2004. Not sure about the rules of ... when in 2004 you bought it, did you finance it, etc. ... better ask CPA before breaking the bank ... as my old attorney used to say ... "Advice is worth what you paid for it" ... mine was free
  4. mtdman

    mtdman LawnSite Gold Member
    Messages: 3,143

    You can't show a net loss with a section 179 expense. Which means you couldn't take more for the expense than what you made. But I do believe you can carry it over to another year. Best bet is to ask a cpa.
  5. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Messages: 4,040

  6. hoyboy

    hoyboy LawnSite Senior Member
    from Chicago
    Messages: 346

    You don't have to use the entire 179 deduction in the year of purchase. You can elect to use a portion of the deduction, then the remaining amount will be grouped in with other assets in future years and depreciated using normal methods.
  7. tglover430

    tglover430 LawnSite Member
    from Alabama
    Messages: 5

    Thanks!!! You guys have a very informative and helpful site. There is so much good info here.

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