Q:

Subject: 179 Inuiry

 

I like your weblog.  I heard the 179 deduction for 6,000 lb vehilce is going to be eliminated in 2008? True?  Also, in general, what is the best entity as a real estate broker?  S Corp? Thanks for feedback.

A:

You are the victim of either a hoax or, more likely, bad and outdated info on the Section 179 deduction, which is very prevalent on the web.  As you can see on my Section 179 web page, the only change for 2008 is a higher maximum. 

I have a suggestion for anyone who hears or sees notices of changes such as you are questioning.  Demand that the person making the claim provide documentation of that fact beyond just that he heard it from someone.  Until a rumor has been properly documented, it should not be trusted or in any way relied on.  I am frankly getting a little tired of debunking these kinds of unsubstantiated rumors, where people try to put me on the spot to prove that something hasn't been changed, when the burden of proof in this kind of situation should rest on those who claim that an actual change has been enacted.

In regard to the best entity to use, that is a decision that must be made with the assistance of a qualified professional tax advisor, who can properly analyze all of the unique details involved.  There is no such thing as a one size fits all approach to this kind of thing and anyone who claims that there is should be avoided.

Good luck.

Kerry Kerstetter

 

Follow-Up:

Thank you for the time to reply at length.  Best,

Labels: 179

- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 12/07/2007 12:21:00 PM Send this post: