title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Tuesday, October 19, 2004
 
Section 179 Total Not Being Reduced
As with all tax changes, the misconceptions are flying around, as with this question I recently received.

Question: Could you let me know when will section 179 decrease from the current $100k deduction?
My Reply:

The overall Section 179 deduction is not going to be reduced at all from its current level of $102,000 per year.

What is going to change is how much of that $102,000 that can be used for vehicles weighing between 6,000 and 14,000 pounds. As soon as President Bush signs the law, it will create a limit of $25,000 per year of the Section 179 that can be used for those vehicles. The new limit will take effect as of the date of signing.

The other $77,000 can still be used for any other kinds of qualifying business equipment, including vehicles weighing more than 14,000 pounds.

I haven't yet seen an announcement of the exact day Pres. Bush will be signing this into law; but I'm guessing it will be very soon.

I hope this clears things up for you.

Kerry Kerstetter


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- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 10/19/2004 06:09:00 PM Send this post:

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