Deductions & credits

Steps to take the Section 179 Deduction:

Your deduction will be limited to the amount of income from the business.  So if you are not seeing all of the deduction it could be limited to the income.

1. Click on Federal in the bar to your left
2. Under Income & Expenses tab at the top, click Review next to self employment income and expenses
3. On the screen Your 2017 self employment work summary, click Edit next to your business (if you have it  set up)
4. Click on Add Expenses for this work
5. On the screen Tell us about any expenses for business click on Vehicle and Continue at the bottom of page (Vehicle is in the Less Common Expenses near the bottom)
6. Did you use a car or truck for your business? Yes
7. On the screen Tell us about your business vehicle, enter your vehicle information
8. On the next screen, choose Yes I own this vehicle
9. On the next screen answer questions for Was this vehicle available for personal use in 2017?
10. On the next screen answer questions for Let's get some info about how you tracked your business and personal miles in 2017
11. On the next screen answer questions about How do you want to enter your mileage for your Truck? and enter your mileage
12. On the next screen answer questions How many vehicles did you use for your business?
13. On the next screen choose "I'll enter my actual expenses…
14. Continue answering through the screens, enter the purchase price of vehicle etc.
15. On the screen "How much do you want to deduct for the business use of this vehicle?" you can choose how much Section 179 deduction you want to take

Instead of depreciating an asset over a multi-year period, you might be able to deduct its entire cost during the first year of use. This is called a Section 179 deduction, also (erroneously) called Section 179 depreciation. Think of it as instant gratification when it comes to deducting the cost of a newly-purchased business asset.

Instead of depreciating an asset over a multi-year period, you might be able to deduct its entire cost during the first year of use. This is called a Section 179 deduction, also (erroneously) called Section 179 depreciation. Think of it as instant gratification when it comes to deducting the cost of a newly-purchased business asset.

What Is Section 179 Deduction

To qualify for a Section 179 deduction, the asset must be:

• Tangible (you're able to touch it, which excludes intangible assets like patents or copyrights)
• Purchased (not leased) for business use
• Used more than 50% in your business
• Placed in service (purchased, acquired, or converted to business use) during the current tax year
• Acquired from a non-related party

The Section 179 deduction can't be claimed for business assets that were acquired in a tax-free exchange or from a person or entity with whom you share a close relationship as specified by the IRS.