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Deductions & credits
This is an update: Per your suggestion, to avoid recapture if I retire in a year or three (although I wonder if it completely avoids such), I changed the computers from Section 179 to 100% special depreciation allowance. It made no change whatsoever to my federal tax bill but a sizable change to my state tax bill. I assume the latter is because my state (CA) is less liberal on accelerated depreciation/S179. What I don't understand is why the Federal tax due did not change at all. To be clear, I am not subject to AMT or anything like that.
Does my choice between the two above, for any of the three items that I could choose one method or the other for, have anything to do with whether the cost of certain items exceed $2,500?
Thanks!
‎April 13, 2022
2:48 PM