Discussion:Sec 179 cash basis TP
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Discussion Forum Index --> Basic Tax Questions --> Sec 179 cash basis TP
Discussion Forum Index --> Tax Questions --> Sec 179 cash basis TP
| 24 February 2009 | |
| Need a refresher and the code doesn't seem to be specific on cash basis taxpayer that bought equipment, but financed a portion of it. This is a cash basis taxpayer. Can I take 179 for the portion that was financed? My interpretation for taking 179 is based on qulaified property, when placed in service and cash outlay.
Any help is appreciated. Thanks | |
| 24 February 2009 | |
| has to do with what was purchased and placed in service nothing to do with cash. | |
| 25 February 2009 | |
| Ekcpa,
I understand that, but since the taxpayer is on a cash basis and has not paid for the equipment completely, I'm still not sure he can take 179 for the entire amount including the amount financed. The Reg talks about purchases only and is silent on this areas, but I believe that the intent of the law was to benefit those who made the expenditure, at least for cash basis TP. What do you think? Thanks for your reply. | |
| 25 February 2009 | |
| What Ek said. Loan is considered same as cash. Full 179 (provided all the other thresholds are cleared) allowed. | |
Death&Taxes (talk|edits) said: | 25 February 2009 |
| Unless the seller directly 'finances' the loan. E.g., I've seen musical instruments sold by dealers where the price is paid in three payments, but not financed through a bank. Though there is a debt, in such cases only the cash spent is deductible. But generally what Dub and Ek said is correct. | |
| 25 February 2009 | |
| D&T brings up the same reason why store credit cards are not considered purchased until paid but regular credit cards are considered purchased when charged. | |
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