title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Friday, March 11, 2005
 
Recapturing Secton 179

Q:

Enjoyed reading your work on the site.  What is your opinion(sole propreitor) if you buy an SUV in December, 2004, weighs more than 6,000 pounds and you take the section 179 without knowing what percent you will use it for business over the period of years you own the vechicle.  Suppose I used it 80% for business in 2004(Dec only)and take section 179 for 80% of the cost.  Assume the cost is 25,000, so I take 80% or 20,000 section 179.  What happens if in 2005 if I use the vehicle 60% for business or increased it to 90%. Any adjustments needed for the years in question because of the change in persoanl use. Thanks in advance.

 

A:

You only need to recapture part of the Sec. 179 deduction if the business usage slips below 50%.

I discussed this earlier:
www.taxguru.net/2004/11/section-179-sales-recapture.html

Good luck.

Kerry Kerstetter

 

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- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 3/11/2005 03:56:00 PM Send this post:

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