Section 179

2 replies
24 views

Do I have to have a registred business to be allowed the 179 deduciton? I do contract work but its all on my social security number not a business? I bought a 2022 Ram 2500 diesel on Jan 3rd of this year

Mike9241

Level 15

if you do not get a w-2 for the work you are an independent contractor. you report the income and expenses on schedule C. assets that have a cost too large to qualify for direct expensing, are capitalized and would likely qualify for section 179. you don't need an EIN to have a business. registration is a question of ;local law so see a lawyer if you have concerns. generally, I would recommend getting an EIN. this is in case you need to issue 1099's. then you can use the EIN rather than your SSN.

see IRS PUB for more info on section 179

https://www.irs.gov/pub/irs-pdf/p946.pdf

Mike9241

Carl

Level 11

Do I have to have a registred business to be allowed the 179 deduciton?

Having a "registered" business and the SEC179 deduction are two unrelated things.

If you are self-employed and report business income/expenses on SCH C, (registered or not) and your business has assets that qualify for a SEC179 deduction, then such deduction is allowed.