Section 179 Tax Shelter Strategy

[George V]

Is anyone here using a strategy to take full advantage of Section 179 on a yearly basis?

If so, spill it!

cuz there's less than two weeks left on the calendar to dodge the April 15th bullet.

 

[Bruce Humphrey]

http://www.section179.org

 

[Steve in Omaha]

Doesn't appear too complicated a "strategy" . Expense vs depreciate. Bought my new el Diablo last month that I will expense for tax purposes.

 

[Cameron1]

Is anyone here using a strategy to take full advantage of Section 179 on a yearly basis?

If so, spill it!

cuz there's less than two weeks left on the calendar to dodge the April 15th bullet.

Speaking of dodge.....I will be pimping out a new Sprinter (buying this year) and new Diesel tm (buying next year in Jan.)

 

[Larry Cobb]

George;

At this late date, time is the greatest concern.

You must take delivery of the equipment or supplies, before the end of your tax year (Dec 31st for most).

A good strategy now would be to purchase items,
that you will need in the next few months of operation.

Larry

 

[George V]

Thanks Larry!

I hope to have taxes done by Christmas. All except the dotted I's and crossed t's.

Got blind sided last year by Obama. Not gonna let that happen again if i can help it.

there has to be a strategy for dealing with the Eight Hundred Pound Gorrilla that comes knocking every April.

Having taxes ready in December is a step in the right direction, i think.

At least it will give me a chance to reach for some Kryptonite if necassary.

 

[Cameron1]

George;

At this late date, time is the greatest concern.

You must take delivery of the equipment or supplies, before the end of your tax year (Dec 31st for most).

A good strategy now would be to purchase items,
that you will need in the next few months of operation.

Larry

Larry
I don't believe supplies have anything to do with Section 179

Here it is in a nut shell


Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It's an incentive created by the U.S. Government to encourage businesses to buy equipment and invest in themselves. It is sometimes referred to as the "SUV Tax Loophole" or the "Hummer Deduction" because many businesses have used this tax code to purchase qualifying vehicles (like SUV's and Hummers.)

Essentially, Section 179 works like this:

When your business buys certain pieces of equipment, it typically gets to write them off a little at a time through depreciation. In other words, if your company spends $50,000 on a vehicle, it gets to write off (say) $10,000 a year for five years (these numbers are only meant to give you an example.)

Now, while it's true that this is better than no write off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it.

In fact, if a business could write off the entire amount, they might add more equipment this year instead of waiting. That's the whole purpose behind Section 179… to motivate the American economy (and your business) to move in a positive direction. For most small businesses (adding total equipment, software, and vehicles totaling less than $500,000 in 2010), the entire cost can be written-off on the 2010 tax return.
color]