• LinkedIn
  • YouTube
  • Twitter
  • Facebook
  • Google+

Giving back your Section 179 deductions

by on
in Small Business Tax,Small Business Tax Deduction Strategies

Q. My wife started a home-based business a couple years ago that didn’t work out. We bought a computer, office furniture and equipment. Do we have to pay tax if we keep them? A.T., Galveston, Texas

A. Probably. You didn’t say so, but we’re assuming you claimed the Section 179 expensing deduction for those business assets. In that case, you must recapture some of the tax benefits for your conversion to personal use. Generally, the amount recaptured is the difference between the claimed Sect. 179 deductions and the regular depreciation deductions that could have been claimed while the business was in operation. Tip: If you claimed regular depreciation deductions instead, you generally owe tax to the extent you realize a gain on the disposition.

Like what you've read? ...Republish it and share great business tips!

Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...

We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.

The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.

" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/7125/giving-back-your-section-179-deductions "

Leave a Comment