Stuart Bronstein wrote:

- quote -

I just happened to stumble across a copy of a pertinent
letter that I wrote to the Reagan administration in 1981. It
looks like the ERTA of 1981 changed Section 179 from a first
year "bonus depreciation" provision to its current form of
"expensing."

The trouble was, ERTA repealed the bonus provision
retroactively to the first of the year (1981), while the new
expensing provision wasn't effective until 1982. Therefore,
many people (a few of my clients, at least) got "screwed"
with respect to equipment purchases during the first half of
1981 (no bonus depreciation, no expensing).

MTW

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Dick Adams wrote:
- quote -

It was there under the "Code of '54" - so that means that
it predates 1986.

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Stuart Bronstein wrote:
- quote -

I figured it was after 1956, since I looked in my college
textbook, the Prentice Hall Tax Course, which I still keep
on my desk and fish out sometimes when a client asks a tax
question.

gets lots of chuckles.

Cheer$,
Harlan Lunsford, EA n LA
Class of 19xx

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Dick Adams <rdadams[at]smart.net> wrote:
- quote -

1950s if I recall correctly.

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"Dick Adams" <rdadams[at]smart.net> wrote:
- quote -

My point exactly. Seeing it being called the SUV tax break
"passed by George Bush" makes me want to puke.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Boston, MA 02109

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"Paul" <taxman[at]negia.net> wrote:
- quote -

I bet its safe to say that none of them are political
activists or write stories or columns in the media.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Boston, MA 02109

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Dick Adams wrote:
- quote -

But the limit was a lot lower!

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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Dick Adams wrote:
- quote -

It was first enacted as Pub. L. 85-866, title II,
Sec. 204(a), on Sept. 2, 1958.

Stu

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Paul wrote:
- quote -

Likewise the are lots of over the road owner operators who
wrote off $100,000 of the cost of tractor units. I generally
do not ask my clients how the vote.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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Paul wrote:
- quote -

They may not like the rule, but as long as it's there, they have no
trouble taking advantage of it along with everyone else.

Stu

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Dave Woods" <davidwoods[at]verizon.net> wrote

- quote -

I do not recall when Sec. 179 became part of the code.
But it has been there for as long as I can recall.

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"Dave Woods" <davidwoods[at]verizon.net> wrote

- quote -

I know plenty of beer drinking, overall wearing Democratic
farmers that wrote off a truck/suv last year.

--
Paul A. Thomas, CPA
taxman at negia.net

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"Paul A Thomas" <taxman[at]negia.net> wrote:
- quote -

Paul, never heard of liberal media bias? To hear these
jokers talk about it, Sec. 179 was a George W. Bush creation
to help his rich buddies write off SUVs.

--
David M. Woods, EA
Woods Financial Services
Boston, MA 02109

Postings here are general information only and not to be
relied upon as advice.

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"Paul A Thomas" <taxman[at]negia.net> wrote:
- quote -

See the JOBS bill passed in the Senate. Hopefully, the "SUV
credit" will be disappearing soon.

/brian

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MAX wrote:

- quote -

Yes. It is not an "audit alert".
But if I had my say on the matter it would be.

Just remember, if business usage drops below 50% in a
subsequent year, it's "payback" time.

Cheer$,
Harlan Lunsford, EA n LA

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MAX wrote:

- quote -

Section 179 deduction has been permitted in the law for
years. Trucks that were not classified as personal autos.
The only issue is the question about business use, which has
to be over 50% to qualify for the 179 deduction.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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"MAX" <loopit[at]optonline.net> wrote

- quote -

First off, Section 179 isn't a "Large SUV/Truck deduction".
Why the press can't get it straight is way beyond my
comprehension.

Section 179 is an election to accelerate the depreciation
allowed for ~any~ qualified business asset. Could be a
desk, a computer, a piece of manufacturing equipment. It
could also be a vehicle with a gross vehicle weight of over
6000#. At some earlier point in time Congress decided to
set a limit on vehicle deductions to keep the "rich" from
buying Mercedes vehicles and deducting them off their books
each year. So ""luxury vehicle" limitations were set in
place. Those are so low that something a tad more expensive
than a used Yugo break the limit ($15,300 I believe).

The limitations for ~any~ business asset are that it needs
to be used for business for greater than 50% of the time
(for vehicles this would be measured by the miles) and that
it continue to be used for greater than 50% of the time for
business for the remainder of it's regular depreciable life.
So, as an example: My business bought the newest, fastest
computer, loaded with DVD, high-end graphics, everything the
computer store had, and tons of games. I unboxed it at my
office on December 5th, and used it in my business for a
month. Elected to take Section 179 on my tax return to
fully depreciate it (it was a $6,000 computer system), and
then in January boxed it back up and took it home so my kid
could play video games. I would have to recapture (add back
to income) the amount of excess depreciation taken through
Section 179 over regular depreciation.

The same works for a vehicle. If business use drops to
below 50%, then recapture of some portion of Section 179
kicks in.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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Does any one have any information on this? Is it an Audit
alert?

Thanks.

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