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Painting Business Owners: Discover the differences between Bonus Depreciation & Section 179.

Name: Painting Business Owners: Discover the differences between Bonus Depreciation & Section 179.
Uploaded: 2024-07-05T13:00:49+00:00
Duration: 36 s
Channel: Daniel Honan
Description: Section 179 requires brand-new assets and caps deductions at $1.2 million yearly, while Bonus Depreciation accepts used equipment and has no dollar…

5 Jul 2024 · 1 min

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Section 179 requires brand-new assets and caps deductions at $1.2 million yearly, while Bonus Depreciation accepts used equipment and has no dollar limit. Both need purchased assets, not gifts or inherited property, and you can use them together.

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Some other aspects with bonus depreciation. So Section 179 required that the asset be brand new. Bonus depreciation just requires that the asset be new to you. So if you purchase a used vehicle or used equipment, bonus depreciation can apply, but it does have to be acquired by purchase. So, you know, it can't be gifted to you, you can't inherit it from Uncle Fred. It does need to be something that you pay for with money. You can combine bonus and Section 179. Section 179 is limited to about $1.2 million per taxpayer per year. Bonus does not have a limit.