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Tilted Cat Head
Administrator
Location: Manhattan, NY
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if you're looking to get it for "nothing" that's not the case. I do hope you understand "write off" doesn't equal "free."
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The Section 179 election is made on an item-by-item basis for eligible property. You don't have to use it on all eligible property bought in that year. The election must be made in the tax year the property is first placed in service.
The Section 179 deduction isn't automatic. Taxpayers who want to take the deduction must elect to do so. You make the election by taking your deduction on Form 4562. When you file this form, attach it to either of the following:
Your original tax return filed for the tax year the property was placed in service, regardless of whether you file it timely.
An amended return filed by the due date, including extensions, for your return for the tax year the property was placed in service.
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Quote:
"Congress reversed itself last fall with passage of the American Jobs Creation Act of 2004 and cinched back the SUV loophole from $100,000 to $25,000 while retaining both the 50-percent bonus deduction and the five-year depreciation schedule. The deduction is claimed as a Section
179 expense, meaning you must be in business, filing a Schedule C or corporate tax return, to claim it."
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the most important part of the "write off" explanation IMO. My accountant set me straight one year by telling me that I'm getting only 65 cents for every dollar I spend and if I wanted to give him the dollar and he'll give me back 65 cents, he'll do it until the cows come home or I learned the lesson.
Quote:
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It is critically important to remember that tax deductions do not offset an expense 100%. "Even though a business expense can save you 30 to 65% in taxes -- depending upon your tax bracket and state and city tax rates -- never spend just to save taxes. It is not a dollar-for-dollar write-off."
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I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not.
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