Getting an Error on Asset Entry (smart phone)

[BCholt12]

I've run the review of my taxes.  I'm getting an error "Eligible Sec 179 property has an unacceptable value."  I have entered an asset to depreciate (smart phone) with 50% business use.  Line 42 on the forms page of the Asset Entry Worksheet is marked Yes.  What should I do to correct this error?  Should I just expense the item (it is over $250)?  

[KurtL1]

To take a Section 179 property deduction see Section 179, what is eligible section 179 property?. One requirement is that the business use must be greater than 50%.

You should consider expensing the business portion of phone as you are allowed to expense the purchase of an asset if the value is less than $2,500.

[BCholt12]

Thank you, I'm still confused on how to deduct the asset. When entering the asset I'm given options on how to expense/depreciate.  Say the phone cost $800 and I used it 50% for business & 50% personal. Which option should I take?  The options given are spread the deduction over several years, deduct the full value this year, take a partial section 179 this year, take a partial section 179 deduction this year & the 100% special depreciation allowance, or the 100% special depreciation allowance.  Thank you...

[RobertG]

Your choices are a matter of personal preference. 

Most people deduct the full value to maximize their deductions.

If you expect to be in a higher tax bracket in future years, future deductions may be worth more to you.  

[BCholt12]

Do you mean still list it in my business assets and deduct the full value of the item this year and take the Section 179 deduction or just expense the total amount in Other/Miscellaneous Expenses?  

[DaveF1006 · Accepted solution]

If the smartphone is under $2500, expense it.  You won't have the hassle of the 179 rules, especially if you sell or dispose of the phone in the future. 

[BCholt12]

Perfect, thanks for your patience 🙂