I would like to know if I can depreciate a tractor and heavy duty trailer using 179 deduction. This would be items that were purchased in 2020. Can I depreciate using another method? It doesn't give an error. I just don't want to make a mistake. It gives me a refund for a large part of money we spent on the equipment.
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If you operate a farm and use the equipment for that purpose, you do qualify for the section 179 deduction.
While @ThomasM125 is correct, you also need to keep the following two items in mind:
Item number 1 above is the key difference between Section 179 and bonus depreciation. Make sure you have taxable income from your trade or business (farming) or the Section 179 will not be used in the current year and will be carried over.
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