Section 179

Another option for tax year 2023, this election allows a tax payer to recover all or part of certain qualifying property, up to a limit, by deducting it in the year the asset was placed in service.(instead of depreciating, you can elect section 179)

Estate and trust cannot elect section 179

Eligible property for section 179:

• Tangible personal proprty such as office eqipment.

• Single purpose agriculture (livestock) or horticultural structures.

• Storage facilities used in connection with distibuting petroleum or any primary product of petroleum.

• Off the shelf computer software.

• Qualified section 179 real property.

• Other tangible propertyused as: Integral part of manufacturing, production, or extraction, or of furnishing transportation, communications, gas, water, electric, sewage disposal services.

• Research facilitity used in connection with any of the activities above

• A facility used in connection with any of the activities in the above for bulk storage of fungible commodities.

• Deductions, Depreciation of asset_ enter amount paid for asset_deduct all or part of value this year.

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If your'e not allowed to write off full amount in a current year, you can carry-over unused portion to the following year.

Secion 179 Limitations:

Limitations - for tax year 2023:

• Cannot exceed more than 1,160,000 of the cost of qualified assets.

• Your section 179 deduction cannot exceed your business net income.

• The amount you can cxpense is reduced if the total cost of sec 179 property placed in service in 2023 exceeds 2,890,000.

Non-Qualified Sec 179 Property:

• Real Property.

• Income producing property.

• Investment property.

• Property used 50% or less by your business.

• Income producing property cannot b used as an asset under section 179.

(office desk, livestock, computer software used for business)

Section 179 listed property:

Listed property include

• Passenger automobiles

• Other property used for transportation

• any property used for entertainment, recreation, or amusement

  
  

sports utility vehicles

For tax year 2023 sec 179 for sport, cannot exceed 289,000

Dollar Limitations

Sec 179 allowable tax year 2023 dollar limitations listed for property

• $12,000 for 1st year

• $19,500 for 2nd year

• $11,800 for 3rd year

• $6,960 for each later taxable year in the recovery period.

Additional deduction take after an sec 179 deduction.