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Transaction requirements for 179 tax deduction

Discussion in 'Model X' started by timx, Feb 6, 2017.

  1. timx

    timx Member

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    Iowa
    While the standard advice would be to ask an accountant, I would guess that there is a much higher percentage of people on this forum having actual experience with this than the percentage of CPAs, so hoping to get some useful feedback.

    I have an X100D on order, to be paid in cash, and intend to use it primarily for business, which is an LLC owned in full.

    1. For Registration, should it be in the company name or individual name? Does either impact whether the $7500 tax credit can be taken and/or the 179 deduction for the company? I suppose depending on the state, such difference could also impact vehicle registration fees.

    2. In making the transaction, should the funds be issued by the business or the individual? Does either impact the $7500 tax credit or 179 deduction?

    Thanks for any help.
     
  2. Tam

    Tam Active Member

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    Accounting is not my field but it makes sense that you register in your LLC if you want to separate business account from private account.

    Same concept is applicable to writing a check or the registration fee. Let the signature be LLC if you want to separate business account from private account.

    LLC is eligible for federal $7,500 tax credit so I don't see what impact that you are talking about.


    I have no idea what 179 is.
     
  3. EldestOyster

    EldestOyster Member

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    Moonlight Beach
    "
    Nor do I. So I Googled It for Us :)

    Courtesy of Investopedia:

    An immediate expense deduction that business owners can take for purchases of depreciable business equipment instead of capitalizing and depreciating the asset. The Section 179 expensing method is offered as an incentive for small business owners to grow their businesses with the purchase of new equipment.
     
    • Informative x 1
  4. Tam

    Tam Active Member

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    Thanks for training me into an accountant :)

    It sounds like if you don't let the LLC to take advantage of the tax credit, you as a private person can take it.

    If you let the LLC takes it, then it is included in the total cost for the business which means it now costs less.

    Costing less means there's less for you to claim for 179 for your LLC.
     
  5. cpa

    cpa Active Member

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    Well, I are one of them accounting dudes. My suggestion is to employ one so you understand completely the tax treatment of your purchase. Do not rely upon Google or casual discussions on internet fora. After dropping more than one hundred large on a car, don't skimp on a couple of C-Notes for income tax advice.

    Business usage is a whole 'nother ball game.
     

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