TAX Question Section 179

[trahanw]

Simple question. Need some pointers.

Brief: 1st year filing taxes. Min Profit. Opened business Oct 2007.

--Question #1:
Should I list equipment puchases under section 179. 80% Business Use and 20% Personal use. Total Value of equipment purchased in 2007 values at about 6K. I have 2 options with this take the lump sum, spread it out over several years. Or just don't list the equipment.

Doing the last minute federal tax through turbo tax. Any help is appreciated, thanks.

[ShaneKislack]

I'd take the full deduction this year.

[trahanw]

Thanks...

[SCone]

Depends on your overall taxes. If you take it as a lump sum this year, how does it effect your bottom line? Take the deduction that makes the best difference in your case.

[CaptainTom]

Unless your taxable business income exceeds the $6000 amount I think it would be to your benefit to spread the expense over several years.

[trahanw]

Thanks Tom...that what I went with. Appreciate all the help. All of you are great.

[AndrewCCM]

I lump sum mine each year... Since this is not my only biz, I rather not have to deal with keeping up with depreciation, etc... Also the fact that I buy and sell often, it just makes it less complicated for me.. Good chance I am not doing it as effectively as I could, but it works. LOL