Under the rules of a Section 179 deduction, you must retain business use of the asset until the end of its useful life. If that isn't possible, you must pay back part of the deduction as a Section 179 recapture.
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 as a 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
Also consider Bonus Depreciation here.
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