- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Section 179
My previous tax year 2020 shows I had an asset of $235. I'm unable to see what I may have typed into the electronic worksheet, but when I download the pdf it shows it listed under Section 179 <7 year property.>
Based on the 7 year classification I am guessing this was a mobile phone (235 is slightly less than the receipt shows I paid but I can't imagine what else it could be) but I thought items under $2,500 could not be generated onto Section 179.
I am not sure how this happened. As I understand it, Section 179 is a single year expense and not reported as a depreciating asset year to year, so this had to be an item purchased and placed in use last year (like the phone.)
Is this a mistake of the software or is this actually allowed? Do I need to do anything for 2021 since I continued to use the phone, but will end its usage in 2022 or 2023?
I have a $600 computer purchase for 2021 but now I am afraid TT will generate it onto Section 179 instead of Safe Harbor.