Section 179 deduction. Explained with Examples. CPA/EA Exam

In this session, I discuss section 179 deductions.
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[@matthewgigantelli7334]

Very helpful video. Saved me a ton of frustration going back to read CCH articles a fourth time

[@AccountingLectures]

Glad it was helpful! Thank you and please visit the website for more farhatlectures.com/

[@marinmathew6052]

I was in US Taxation for 8 yrs and then moved to a different field. As am preparing for a comeback, I found this video.. excellent..explained.. ❤❤ i would encourage you to make more such videos..

[@AccountingLectures]

Glad it was helpful! Thank you and please visit the website for more farhatlectures.com/

[@garrwag2975]

Great lecture. Been really looking forward to this one. Thank you.

[@AccountingLectures]

Thank you and please visit the website for more farhatlectures.com/

[@swingoutmuseum6454]

Thank you, your presentation on this video helped solve a lot of my confusion.

[@AccountingLectures]

Most welcome. Please check my website for more. Start your free trial : farhatlectures.com/

[@feishen862]

I have watched this video for many times. Thank you ❤

[@AccountingLectures]

I'm glad you like it. Thank you and please visit the website for more farhatlectures.com/

[@patcreno]

I got 61,600 as my cost basis. Using table A-1 from pub 946. 7:04

[@TheGeneraltigre]

excellent as always

[@AccountingLectures]

Thank you and please visit the website for more farhatlectures.com/

[@twolfe83]

Thanks for the great video Farhat! My question is can the deduction for these expenses be taken from one's personal tax return, rather than the business. Specifically, I have a full-time job where I make $150,000 per year. I have started a small side business (registered as an LCC solely in name of my wife and I) and have incurred expenses getting the company off the ground. The purchases have come solely from my fulltime job income as the side business is yet to create any income. Can I claim the 179 deductions no my personal income tax for personal property purchased for my LLC? As example, if I purchased a gas generator, air compressor, etc. for a total of $50,000, would I be able to deduct the $50,000 from my $150,000 personal income?

[@andrescsulb]

I am a bit confused about minute 7:15 or so…this is the first example in which John purchased an asset that he depreciated 100% on year 1 through section 179. Then he decided to sell it for $5 in 2024. This will generate him a “gain” for which he will be tax $5 as ordinary income. Should John had opted for the MACRS route after 3 yrs of depreciation the new basis for the asset would be $48,250. At this point John decided to sell the asset for $50K therefore the $1750 would be a “gain” that would taxed as ordinary income. However, it is mentioned shortly after that…if John had used section 179 the whole $50K would be considered taxable income. The question is: if he sold the asset for $5 initially would he pay ordinary income tax on those $5 or he would have to pay ordinary income tax on the new basis of $48,250 based on the MACRS depreciation estimated value at the 3-year mark? That part threw me off Thanks

[@melvipriscafernandes8308]

Could you please link videos that are related to the current video? e.g. Mid quarter convention video

[@JulianoGSF]

Hello, let's say I earn a sum of money thru stocks on my personal name, can I open a new LLC, apply section 179 to buy a vehicle for a new company that has not generated any income? Or must the income be generated thru the company?

[@patcreno]

It's a startup company so you are not expected to have any income. If you buy a 5k vehicle for ur business in 2022 but earned only 4k for the year, you would only be allowed the 4k deduction from irc 179.

[@Joepiii]

So you need to have a business in order to write off tax?