Dr. Friday explains the difference between Section 179 and bonus depreciation when writing off business equipment. She notes that the best choice can depend on your situation and encourages taxpayers to understand how the percentages affect them.
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: it’s a depreciation, it’s a bonus depreciation concept, but you have two things. You have Section 179 and you have bonus depreciation, and sometimes you need to figure out which one is going to be better for you.
Bonus depreciation rate, 40%, decreasing over the years. Now it’s 100% again. And then you have Section 179, which is 100, but you need to figure out sometimes bonus is better than Section 179 and sometimes Section 179 is better than bonus.
You need to understand the different percentages and how that’s going to affect you. If you need help, just check us on the web, drfriday.com.
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.