How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Jax Tax Your Own Question
Jax Tax
Jax Tax, Tax Attorney
Category: Tax
Satisfied Customers: 1408
Experience:  JD, LL.M in Business and Taxation, IRS Enrolled Agent. Expert in Business and Tax Transactions
59761513
Type Your Tax Question Here...
Jax Tax is online now
A new question is answered every 9 seconds

I would like to depreciate the entire purchase for a new piece

This answer was rated:

I would like to depreciate the entire purchase for a new piece of equipment on 2011 tax return. Under Sec 179, can I depreciate the full amount even though the equipment was not put into service until September (we operate on calendar year)?

Jax Tax : So long as the cost is under $50k the month put into service will not matter.
Jax Tax : So, yes you can take section 179.
Customer:

One month prior to actual service date, the cost was $90K for the equipment. As this amount is greater than $50K, what would deduction possibility be?

Customer:

One month prior to actual service date, the cost was $90K for the equipment. As this amount is greater than $50K, what would deduction possibility be?

Jax Tax : You will be fine. I forgot a zero. The limit is $500000. So long as the equipment you are purchasing is new then you will be fine.
Customer:

Thank you . . . I will assume meeting the dollar amount is the criteria and the timing does not matter. . . . I will be able to take advantage of the deduction.

Jax Tax and 2 other Tax Specialists are ready to help you
Customer: replied 5 years ago.
You mention . . . so long as the equipment is new. We also just purchased a used tractor . . . $15K. Your comment implies, we amay not be able to fully deduct it under Sec 179??
A used tractor qualifies. Just meant new to you.
Jax Tax and 2 other Tax Specialists are ready to help you