Many businesses take advantage of the Bonus Depreciation and Section 179 deductions on asset purchases.
The asset must be used at least 50% for business purposes to claim these deductions. If the depreciation deductions are claimed, and in a subsequent tax year the business use falls below 50%, the company must recapture the accelerated depreciation and recalculate the amounts using the straight line method.
Property that is used less than 50% for business purposes must use the straight-line ADS method. The business cannot use MACRS, Bonus Depreciation, or Section 179 deductions.
In this example, we look at a landscaping company that claimed bonus depreciation for a work vehicle that was previously 100% business use, and then in a subsequent tax year the business use fell to 40%.
For a larger database of tutorials, please visit our website and search for your question:
[ Ссылка ]
DISCLAIMER: The information provided in this video may contain information about tax, financial, and legal topics. Such materials are for informational purposes only and may not reflect the most current developments. These informational materials are not intended and should not be taken as tax, financial, or legal advice. You should contact an advisor to discuss your specific facts and circumstances. Self-help services may not be permitted in all states or jurisdictions. The use of these materials does not create an attorney-client or confidential relationship. This video does not include information about every topic or issue related to these informational materials.
#Form4797 #BonusDepreciation #Section179
