Sec. 179 Limits
Posted by taxguru on February 13, 2006
Q:
Subject: Section 179 Upper Limits
Hello–I have the opportunity to purchase (and take delivery) of two qualified pieces of equipment. One costs $79,000 and the other $133,000. Is my 2005 deduction limited to the $105,000 (plus accelerated depreciation) or is it $79,000 + $105,000 = $184,000 (plus accelerated depreciation)?Thanks.
A:
The $105,000 limit is per tax return, not per asset. You could have dozens of items totaling $105,000 or just one.
As I have described several times, a 1040 can claim $105,000 in Section 179 and a C corp can also claim up to another $105,000 on its 1120.
If you are spending this much money on business equipment, you are being very irresponsible by not working with a tax pro who can assist you and ensure that you don’t screw things up.
Good luck.
Kerry Kerstetter
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