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Facing owing the IRS close to a million dollars what can I…

Customer Question
Facing owing the IRS...

Facing owing the IRS close to a million dollars what can I do in the way of a purchase to avoid some of this taxation

Accountant's Assistant: What state are you in? It matters because laws vary by location.

Florida

Accountant's Assistant: Has anything been filed or reported?

No

Submitted: 2 months ago.Category: Tax
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Answered in 6 minutes by:
12/11/2017
Tax Professional: Chad EA, CFP ®, Enrolled Agent replied 2 months ago
Chad EA, CFP ®
Chad EA, CFP ®, Enrolled Agent
Category: Tax
Satisfied Customers: 1,363
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA
Verified

Welcome to JustAnswer!

My name is ***** ***** I will be able to assist you today.

If you currently own a business you could take advantage of section 179 which would allow you to possible take a current year deduction of up to $500,000 for business expenses that you place into service during the current year such as equipment.

___

Additionally, if you have not already done so, I would recommend fully funding a SEP IRA.

Contributions an employer can make to an employee's SEP-IRA cannot exceed the lesser of:

  1. 25% of the employee's compensation, or
  2. $55,000 for 2018 ($54,000 for 2017)

Below is information directly from IRS.Gov concerning Section 179

"The maximum amount you can elect to deduct for most section 179 property you placed in service in tax years beginning in 2016 is $500,000"

"To claim depreciation on property, you must use it in your business or income-producing activity. If you use property to produce income (investment use), the income must be taxable. You cannot depreciate property that you use solely for personal activities."

https://www.irs.gov/publications/p946#en_US_2016_publink1000107308

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Tax Professional: Chad EA, CFP ®, Enrolled Agent replied 2 months ago

If you do have additional follow up questions please let me know!

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Tax Professional: Chad EA, CFP ®, Enrolled Agent replied 2 months ago

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Thank you!

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Chad EA, CFP ®
Chad EA, CFP ®
Chad EA, CFP ®, Enrolled Agent
Category: Tax
Satisfied Customers: 1,363
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Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA

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