Section 179 For Phone System
Posted by taxguru on June 5, 2005
Q:
Subject: May I ask you a quick tax question about section 179?Please advise me on your thoughts regarding the purchase of a new business telephone system and being able to utilize section 179 for a tax break on this purchase. We are debating at our company on whether you can write off some of the purchase expenses or not…I thought I would ask an expert.Thanks,
A:
While buying a new phone system would possibly be eligible for Section 179 expensing, whether you can or cannot actually claim it depends on various other factors.
These include:
The total cost of new equipment placed into service during the tax year; i.e. $420,000 for 2005
Whether there is a net profit for the year, because Section 179 can’t create or add to a net loss.
You really need to be working with a tax pro who can analyze your figures and give you advice based on your actual numbers.
Good luck.
Kerry Kerstetter
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