Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-21-2007, 04:02 PM
Junior Member
 
Join Date: Jan 2007
Posts: 3
Depreciation Deduction-Section 179

TaxGuru,

What is the maximum one time deduction allowed for 2006 tax return. I think it is referred to as section 179 deduction?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-21-2007, 09:22 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
Dear Kapriati,

The maximum one time deduction allowable for 2006 is $108,000 for qualified expenditures! Remember this is deduction is limited to taxable income without consideration of applying the section 179 deduction.

In other words, no deduction is allowed against $0 taxable income, and where taxable income is say for example $50,000, the s179 deduction is reduced to $50,000 despite the taxpayer having qualifed expenses of say $108,000.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.