Hi there, I have been trying to figure this out myself but having trouble. I bought a van for $37,000 and am self-employed with a net income of $18,000. I file jointly with my husband who gets 1099R income. I am confused about whether Section 179 deduction or Special Depreciation would be better for me. SD gives me a bigger refund but puts my net income into a negative situation. Section 179 gives me a much smaller refund but puts my net income at $0. My income is variable, and so I don't know if I will make the same amount this year as last year, but I can always do a catch-up contribution to a 401k in the future to reduce my taxable income. I don't think either changes our tax bracket for this year. I am tempted to go for the higher refund, but maybe it would be more prudent to have a depreciation deduction next year. Any advice is appreciated.
