title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Sunday, September 27, 2009
 
Section 179 & Losses



Q:



Subject:  Sec 179 depreciation.


Hello, just found you on the web and had a question regarding this tax law.  If our business takes a loss the first year (this year) can we still use this for the over 6,000 lb. commercial truck we purchased this year also?


Please let me know and thanks.



A:



Section 179 is very explicit on the fact that it cannot be used to cause or increase a net loss for the year.

The first year bonus depreciation doesn't have that restriction, so it can be used to generate a net loss for the year.

Your own personal professional tax advisor should be able to properly handle the appropriate depreciation deductions for all of the capital assets for your business.  Do not attempt to do this on your own.

Good luck.

Kerry Kerstetter


 

Netflix, Inc.

 


- posted by Kerry M. Kerstetter, MBA~CPA~ATP~ATA @ 9/27/2009 06:33:00 PM Send this post:

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