What is the Section 179 Deduction and How Does It Work? - Part 1 of 2

[@maxdiaz8790]

You’re absolutely amazing with your explanation

[@EfrosFinancial]

Glad it was helpful!

[@mountaintopper]

If I used section 179 this year and sell my business next year, and plan to keep said vehicle after the sale, do I have to pay the section 179 deduction back?

[@Highm8nance88]

I started my business in 8/2021. However I purchased some equipment prior to me starting my business. How do I write that equipment off?

[@ccthecoach24]

I would let a professional do an amendment.

[@danielblas7318]

So in laymans terms I purchase the vehicle then when I file my taxes and I get the agreed price paid for vehicle back 100%?

[@michaelcherilus8864]

Is renting a truck of gvw 26,000 eligible for section 179

[@chrstphrszn9338]

leasing yes! idk about renting

[@sheepyhollowhomestead1873]

Do I have to claim 179 in the first year my business is established to use it going forward, or can I use it at any time. I understand once its used the cap rolls over from year to year, but I was told by someone we had to use it in year 1 inorder to use it in future years. Is this true?

[@EfrosFinancial]

You do not have to claim Section 179 in the first year in which your business is established. Instead, you may elect to use the Section 179 deduction in tax years during which you purchase and place in service eligible assets. Any elected deduction which is not used in a particular tax year (ex. if there is inadequate business income to support the deduction) is carried forward to future tax years. I hope this helps!

[@sheepyhollowhomestead1873]

@@EfrosFinancial It does! That was my main question. Thanks!

[@trinhnguyen5536]

I heard to qualify, the business ha to be in business for at least two years?

[@paulrandesi7513]

@@EfrosFinancial However Turbo Tax is telling me for my rental property I cannot carry it forward into the second year. Does that mean I have to now depreciation the remaining amount? Strange thing is TT reason doesn't make sense it says that I cannot do it because the property is not a commercial property. Its a 6 unit building and is only used for income.

[@andreamoore806]

Can you make a video explaining the difference between 179 and de minimis safe harbor, please?

[@EfrosFinancial]

Hello Andrea, Thank you for your question -- I made a video to answer it here: kzbin.info/www/bejne/iZ7LlJV4r6mVbrc I hope this helps! :D

[@seanvincenttt]

Outtro song?

[@MrBradjarvis]

Your big screen is only using 2/3 of the screen resolution, you’re probably using HDMI, Get yourself a DisplayPort cable

[@EfrosFinancial]

Hello Brad! Thank you for your feedback. The screen resolution was adjusted to allow for easier screen capture. Ordinarily, the entire screen is used as it is connected through a DisplayPort cable. :)

[@jacobhernandez4347]

Business Associate student here. thank you for the clarification, I came across this in my tax accounting class, I believe I want to get in to this side of finance, it just seems like tax accounting is the foundation to a business structure and its decisions.SUBSCRIBED