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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16547
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Hello! I previously asked this question but I would like a

This answer was rated:

Hello! I previously asked this question but I would like a second opinion confirmation before I sign my tax return. I am a small business taking Section 179 on my federal return (approx $50k). My state return (California) limits me to $25k for Section 179. I am going to claim the max $25k on the state return, but if I have excess unused Section 179 (approx $25) can I depreciate that excess on my state return? In other words, can I claim $25k section 179 AND $25k depreciation to cover the full $50k in qualified equipment? Thank you.

MyVirtualCPA :

Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

MyVirtualCPA :

On your state return, you would claim $25,000 of section 179 and then you would depreciate the other $25,000 over the useful life of the asset

MyVirtualCPA :

So, you won't have a full $50,000 deduction in the current year.

MyVirtualCPA :

Does this make sense?

Customer:

Yes that makes perfect sense....I forgot to say that I understand for the state I will get the $25k S179 and then of course

Customer:

less for the depreciated vehicles comprising the other $25 in purchases...thank you SO much...I could not get that answer online anywhere!!!

MyVirtualCPA :

I'm glad I could help you out. Once satisfied. will you please rate my response as "excellent" so that I may receive credit for assisting you today

Customer:

absolutely...what a great service, I have spent days looking for answers...I'm sure I will have more questions, can I request you to answer my questions?

MyVirtualCPA :

Yes, you can let me give you a link hold on a second

MyVirtualCPA :

http://www.justanswer.com/finance/expert-myvirtualcpa/

MyVirtualCPA :

If you go to that link, and enter the question below my picture it will come to me directly

Customer:

terrific thank you again you made my day!

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Thanks, Gail for your positive rating. Please come back and visit MyVirtualCPA for any of your tax, finance, or social security needs. It was a pleasure working with you today.

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