Paul Graff Posted December 31, 2013 Report Share Posted December 31, 2013 I know, I know, VERY end of the year. But I have a new tax person and I didn't have my usual December planning session. The new guy's also nowhere near as aggressive as the previous one, who I had to let go for an unrelated reason (He insulted my wife... Idiot!!). Too aggressive in some ways, I suppose... Anyway, I would appreciate it if a few of you (at least vaguely) could share some of your most successful strategies. This applies mostly to those of you who are incorporated. I have a S-type corporation for many years now, and the profit flows through to the AGI of my wife's and my W-2 income. So if you're all W-2, then you are in a very different situation than me. I was fortunate enough to have a very good year (my best yet) and hardly bought any equipment. I am very grateful. I am going to buy some gear today (a 633 or a Nomad), but I don't want to buy more than that, because I don't really need it right now. Most of all, I'm curious how many of you business owners have taken advantage of Section 179 and the hugely advantageous tax write off of a vehicle with a gross vehicle weight rating exceeding 6000 pounds. My plan was to wait for the release of the 2014 Transit Connect, but neither that vehicle nor the Nissan NV 200 weigh enough to qualify for the "Hummer loophole". Scaled back from the height of its fame in the 90s, but still significant. I'm also torn, because I find it politically repugnant to financially reward the purchase of inefficient vehicles, yet I am actually tempted to go buy a GMC Savana today. I would just not make it my daily driver. This is one of those posts which, like so many others, I should wait an hour, reread, and then decided against posting it. I usually end up keeping my cards (arguably a little too) close to my chest. But what the heck… I'm just going to run it up the flagpole before I go spend a bunch of money. There's also charitable giving, of course, but that is a private matter for each of us and it quickly gets ostentatious to discuss it publicly. Also feel free to call or write me privately if you have something you want to share, but not in the thread. Thanks, Paul Quote Link to comment Share on other sites More sharing options...
Mirror Posted December 31, 2013 Report Share Posted December 31, 2013 Here's a link in case someone wants to read up on section 179; http://www.section179.org/section_179_deduction.html Quote Link to comment Share on other sites More sharing options...
studiomprd Posted December 31, 2013 Report Share Posted December 31, 2013 PG: " I had to let go for an unrelated reason (He insulted my wife... Idiot!!). " yeah, tough call, as a really good tax person is hard to find! you may be a bit late, but OTOH, New Years Eve is supposed to be a great time to buy a vehicle... and more wireless..? Quote Link to comment Share on other sites More sharing options...
Paul Graff Posted December 31, 2013 Author Report Share Posted December 31, 2013 Hmmm....well I tried to just delete the whole topic, but I don't see how I can. Anyway, vehicles like the TC will still qualify for Section 179 deduction because they are unquestionably for business use (i.e. no rear seats, cargo divider, etc). Limit is on vehicles that are also for personal use, which is why it is controversial when someone gets a higher deduction for a Hummer or Escalade just because they weigh more and are thus not subject to limits on luxury vehicles. None of which is relevant for me at least. Okay....moving on... Quote Link to comment Share on other sites More sharing options...
Philip Perkins Posted December 31, 2013 Report Share Posted December 31, 2013 I've done a lot of 179 deductions and the IRS has been fine with them. No single item was as big as a whole new full-sized van, but the total annual deduction was in proportion to what I made in that particular year, and what my tax liability was. Almost no equipment deduction is worth doing just for the write-off alone, the deduction (at least in my income bracket) isn't big enough to justify the cost of gear that I don't really need. One thing you CAN do is buy supplies and expendables for the coming year--they get about the same deduction as equipment. philp Quote Link to comment Share on other sites More sharing options...
Paul Graff Posted January 1, 2014 Author Report Share Posted January 1, 2014 Hi Phil, Thanks for the reply. My original post was rushed and a bit confusing, which is why I wanted to delete it. Yes, I have also done many Section 179 deductions; my gear of course, and even my current vehicle. I hadn't looked back at my old taxes when I posted and was panicking a bit realizing how light on deductions I was going to be this year. It's all good. And I completely agree that there is no point in buying gear you don't need. That said, I did pick up some useful items from Location Sound and Trew--but no new vehicle. I don't mind paying my taxes; I appreciate the civilized society made possible by them. But I also want to be smart about timing my purchases. I suppose a resolution for 2014 will be to get on that... errr... a bit earlier in the year. ;-) PG Quote Link to comment Share on other sites More sharing options...
gpiegari Posted January 1, 2014 Report Share Posted January 1, 2014 Wow, great link! Tax code information in a helpful, informative language that's easily understood. Not sure I've ever seen that before... Here's a link in case someone wants to read up on section 179; http://www.section179.org/section_179_deduction.html Quote Link to comment Share on other sites More sharing options...
RadoStefanov Posted January 1, 2014 Report Share Posted January 1, 2014 Talk to your tax person. Since last year you can depreciate your gear 100% right away. Quote Link to comment Share on other sites More sharing options...
Erve Posted January 1, 2014 Report Share Posted January 1, 2014 This year I think it's .5 million in equipment can be written off 100% and next year only $25,000 before it must be amortized. Quote Link to comment Share on other sites More sharing options...
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