Q:

Subject: nother sextuin 179 question

 

This is one of those questions that almost afraid to ask because the answer seems so simple that I must be missing something REALLYobvious. However, I havent been able to find a definate answer or anytthing suggestive. Ive spent 2 or 3 hours searching for some kind of answer with no luck, so here it is-

 

Is the section 179 only good for two items which space is provided for on the form? Is there an item number limit for this deduction?

 

Thanks for your time.

A:

I have seen plenty of people, including some tax pros, with the mistaken belief that the number of blank lines on an IRS form dictates how many items can be listed.  That is absolutely not the case.  Whenever you have more items than blank lines available, enter "See Attached" and have a detailed listing.  This is done automatically by most tax prep software.

For Section 179, there is no numeric limit to the number of new business assets for which it can be claimed on each year's tax return.  All that matters are the dollar values.  I have prepared returns where we had two and three full pages of small dollar items listed, totaling up to the maximum available, or even lower.

Good luck.

Kerry Kerstetter

Labels: 179

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 3/22/2005 03:55:00 PM Send this post: