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Video instructions and help with filling out and completing Can Form 4797 Deluxe

Instructions and Help about Can Form 4797 Deluxe

Hi Dan, I would like to talk to you about some developments within depreciation and proper deductions for depreciation within a business that can save you substantial money if they are applied properly. The first thing I want to talk about is the PATH Act of 2015, signed late 2015, that permanently extended Section 179. What does that mean to you? That means that you can take up to a half a million dollar deduction for equipment that is purchased and placed in service in 2017. For certain SUVs, it's capped at twenty-five thousand dollars. A couple of things to be careful for here is, it can be limited to taxable income. So, if you don't have taxable income, it's reduced to taxable income. You can't take taxable income below zero, so you can't create a loss with it. The next thing is, if you purchase more than two million and $30,000 in equipment, you start to phase out that half a million dollars dollar-for- dollar. When you get over that, the thing to be careful for within Section 179 is depreciation recapture. If you buy equipment or a vehicle and you later sell it, you may have to recapture all or part of that and bring it back into income. So, that's something to be careful for and to plan for as you're doing this. The next piece that I want to talk about within depreciation is what's called bonus depreciation or Section 168(k). So, that was a provision that was extended through 2019. For 2017, you can deduct up to fifty percent of the cost of the equipment. For 2018, up to forty percent of the cost of the equipment. And in 2019, up to thirty percent of the cost of the equipment. Bonus depreciation is a little...