In this enlightening ‘Dr. Friday Tax Tips – One Minute Moment’ episode, Dr. Friday, the head of Dr. Friday’s Tax and Financial Firm, delves into the complexities of Section 179 and bonus depreciation, two critical tax incentives aimed at encouraging business investment. While Section 179 allows businesses to obtain an immediate tax benefit by investing in new equipment, bonus depreciation offers a longer-term strategy for accelerated depreciation. Dr. Friday emphasizes the importance of consulting a tax expert to navigate these options effectively, especially considering the varying implications on federal and state tax returns. For those perplexed by these tax strategies, Dr. Friday offers her expertise to clarify and guide business investments for optimal tax benefits.
Transcript:
G’day, I’m Dr. Friday, president of Dr. Friday’s Tax and Financial firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Section 179 versus bonus depreciation. Section 179 is the incentive designed by the IRS to encourage businesses to invest in themselves by purchasing new equipment, receiving an immediate tax benefit, where bonus depreciation is a substitute or a longer-term way of taking accelerated depreciation. Now, some of you are sitting there going, “What are you talking about?” This is something you really do need a tax expert to talk about. And sometimes, if you take a 179 on your federal return, the state will now allow it on your franchise excise. Understanding taxes is what I do, so call me if you need any help.
You can catch the Dr. Friday call-in show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.