Section 179 question

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
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Wanderlust2022
Posts: 31
Joined: Fri Mar 18, 2022 8:53 am

Section 179 question

Post by Wanderlust2022 »

For the sake of simplicity…

I may be starting a business next year. The needed equipment will cost $80,000. I know it will meet the requirements to be 100% eligible for the 179 write off. Assuming I make $80,000 during the year, would that income be free from federal taxes?

I know taxes are rarely that simple but is this logic essentially correct?
sc9182
Posts: 1320
Joined: Wed Aug 17, 2016 7:43 pm

Re: Section 179 question

Post by sc9182 »

Try/search bonus depreciation (how/weather it’s better than 179).

But, do keep in mind - business may need to have a purpose (and long term profit motive) than a shell/front for simply buying/expensing goods/service.

https://www.bakertilly.com/insights/bonus-depreciation

IANAL, IANCPA - just a random poster on internet
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