Claiming Section 179 expensing can be a great way to save money on taxes.
And no wonder. Section 179 lets your business take an immediate deduction for expenses on certain depreciable assets.
But watch out! If you handle your Section 179 deductions the wrong way, you can face some expensive consequences!
Specifically, if you violate the agreement you make with the IRS (when you claim Section 179 expensing), the government can show up and “recapture” a huge chunk of your Section 179 savings.
Want to comply with the law and avoid costly recapture problems?
Read the full article titled Tax Tips: Don’t Let Section 179 Recapture Hurt You.
Three ways our fact-filled article can help you:
- You’ll learn the mistakes you can make that will initiate a costly recapture. Here are a couple:
- Allow your business-use to drop to 50% or less
- Give your Section 179 property to a relative or a non-relative
All will be explained when you read the full article.
- We’ll tell you what happened to Jerry Jackson when he made a big mistake. In 2018, Jerry Jackson claimed a $53,000 Section 179 deduction on a qualifying pickup truck. In 2020, Jerry’s wife drives the truck and Jerry’s business-use drops to zero. Jerry violated his 50% business-use agreement with the government. This means now he’s going to face recapture. If you don’t want this kind of problem to happen to you, read the full article.
- We’ll warn you about four dangerous IRS traps to avoid. Yes. Section 179 expensing deductions can save you a lot of money up front. But don’t forget the back end. You see, if you convert a Section 179 asset to personal use without knowing the rules, at the end of the day, you’ll suffer a painful recapture. We’ll show you how to avoid that costly problem when you read the full article.