[jeff]

REG Resources:

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Jeff Elliott, CPA (KS) | Another71 | NINJA CPA | NINJA CMA | NINJA CPE

[melnp]

Can someone please confirm the section 179 expenses?

What is the max. deduction and max.total equipment purchased?

Thanks.

[Sam]

Max deduction is $500K on purchased up to $2M. If purchases are over $2M there' s a dollar for dollar decrease in the allowable deduction so if total purchases were $2,015,000 the max deduction is $485,000.

[Sam]

Max deduction is $500K on purchased up to $2M. If purchases are over $2M there' s a dollar for dollar decrease in the allowable deduction so if total purchases were $2,015,000 the max deduction is $485,000.

[Anonymous]

@melnp & Sam

For 2012, the max deduction was $125 000 for new or used property acquired from an unrelated party. This maximum is reduced dollar for dollar by the amount of property placed in service during the year that exceeds $500 000

For 2013, the max deduction is $25 000 reduced $ for $ by the amount of property exceeding $200 000.

[Anonymous]

@melnp & Sam

For 2012, the max deduction was $125 000 for new or used property acquired from an unrelated party. This maximum is reduced dollar for dollar by the amount of property placed in service during the year that exceeds $500 000

For 2013, the max deduction is $25 000 reduced $ for $ by the amount of property exceeding $200 000.

[melnp]

Hi ericnkem and Sam,

I found the following information from Becker 2013 update and I am not sure what numbers I should be studying.

” Expense Deduction in Lieu of Depreciation (Section 179) covers the 2012 and 2013 Section 179 rules prior to the American Taxpayer Relief Act of 2012. The following covers the rules in effect after the passage of the act:

For tax years 2012 and 2013, the taxpayer can expense up to $500,000 of the cost of qualifying property. This maximum expensing amount is reduced dollar for dollar if the taxpayer purchases and places in service during the year more than $2,000,000 of qualifying property.”

[melnp]

Hi ericnkem and Sam,

I found the following information from Becker 2013 update and I am not sure what numbers I should be studying.

” Expense Deduction in Lieu of Depreciation (Section 179) covers the 2012 and 2013 Section 179 rules prior to the American Taxpayer Relief Act of 2012. The following covers the rules in effect after the passage of the act:

For tax years 2012 and 2013, the taxpayer can expense up to $500,000 of the cost of qualifying property. This maximum expensing amount is reduced dollar for dollar if the taxpayer purchases and places in service during the year more than $2,000,000 of qualifying property.”

[Future_FLCPA]

I'm pretty certain it's what @melnp is saying.

B - 80 (Aug 2012)
A - 89 (Jan 2013)
F - 77 (May 2013)
R - 83 (Nov 2013)

[Future_FLCPA]

I'm pretty certain it's what @melnp is saying.

B - 80 (Aug 2012)
A - 89 (Jan 2013)
F - 77 (May 2013)
R - 83 (Nov 2013)

[Anonymous]

@melnp

You are right. I'm also using Becker and I just checked the updates. Thank you

[Anonymous]

@melnp

You are right. I'm also using Becker and I just checked the updates. Thank you

[smsingla]

I am reposting amelia's post because I need help with this too.

Can someone please tell/show me what the deduction would be if your start up costs is over 50,000. Lets say it is 54,000. I know you are allowed $5,000 deduction immediately and the rests to be amortized by 15 yrs (180 months) but I don't know how to do the calculation if it is over 50,000.

REG 81
BEC 74,65,78
FAR 79
AUD 85 DONE!!!

[smsingla]

I am reposting amelia's post because I need help with this too.

Can someone please tell/show me what the deduction would be if your start up costs is over 50,000. Lets say it is 54,000. I know you are allowed $5,000 deduction immediately and the rests to be amortized by 15 yrs (180 months) but I don't know how to do the calculation if it is over 50,000.

REG 81
BEC 74,65,78
FAR 79
AUD 85 DONE!!!

[Future_FLCPA]

Let's say that startup costs are 54,000.

Normally, there would be an automatic 5,000 deduction, however since startup costs exceed 50,000, the 5,000 deduction is reduced dollar for dollar by the amount of costs that exceed 50,000. In this case, startup costs exceed 50,000 by 4,000 (54,000-50,000).

Take the 4,000 of excess startup costs and subtract it from 5,000. This leaves you with an automatic deduction 1,000.

However, there is another piece to this situation. You may amortize the remaining startup costs over a 180 month period. Since we already deducted 1,000, we still have 53,000 to amortize for 180 months.

53,000/180 months = 294.44 amortization per month.

B - 80 (Aug 2012)
A - 89 (Jan 2013)
F - 77 (May 2013)
R - 83 (Nov 2013)

[Future_FLCPA]

Let's say that startup costs are 54,000.

Normally, there would be an automatic 5,000 deduction, however since startup costs exceed 50,000, the 5,000 deduction is reduced dollar for dollar by the amount of costs that exceed 50,000. In this case, startup costs exceed 50,000 by 4,000 (54,000-50,000).

Take the 4,000 of excess startup costs and subtract it from 5,000. This leaves you with an automatic deduction 1,000.

However, there is another piece to this situation. You may amortize the remaining startup costs over a 180 month period. Since we already deducted 1,000, we still have 53,000 to amortize for 180 months.

53,000/180 months = 294.44 amortization per month.

B - 80 (Aug 2012)
A - 89 (Jan 2013)
F - 77 (May 2013)
R - 83 (Nov 2013)

[Author]

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