Answers · Deductions, assets & depreciation
What Is Section 179?
Section 179 permits elective expensing of qualifying property up to annual limits and subject to business-income and other restrictions.
How it works
The rule, and what it turns on.
Annual limits are inflation adjusted and entity/pass-through rules can add another layer.
Example
A profitable business can elect §179 for qualifying equipment instead of regular MACRS, subject to current limits.
Common mistakes
What we see go wrong, and what we do instead.
- Treating §179 as unlimited.
A better approach
- Compare §179 with bonus and regular depreciation.
Authority
Where this comes from, so you can check it.
IRC §§167, 168 and 179; Treas. Reg. §1.167(a)-1; IRS Publication 946; Form 4562 and instructions.
Educational information, not individualized tax advice. Treatment depends on your facts, entity classification and tax year, and IRS instructions change. Confirm your own position with us before relying on it. Mint Associates does not provide legal services.
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