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Deductions & credits
section 179 is limited to business income before the 179 deduction. so if you net $200K before 179 but the equipment costs $300K. if you take 179 on all of it you are actually only allowed a deduction of $200K with $100K being a carryover to next year. there is no such limitation if the equipment qualifies for 168K - bonus depreciation. I would suggest you sit down with a tax pro who would be able to discuss tax-saving ideas such as a retirement plan with you and record-keeping and other requirements depending on the nature of your work. maybe form an S-Corp or LLC.
‎October 21, 2021
11:47 AM
1,665 Views