2007 Section 179 Tax Deductions

2007 Section 179 Information
This page will help those that filed an extension and still need to prepare a 2007 tax return.

I'm preparing my 2007 tax return, what were the Section 179 limits last year?
The 2007 Internal Revenue Code Section 179 allows a business the ability to deduct the total cost of qualified tangible property up to $125,000, as long as that business spent less than $500,000 on qualified property in 2007, and the assets were placed in use by December 31, 2007.

What if I acquired more than $500,000 in equipment in 2007?
If a small business spent over $500,000 on equipment in 2007, each dollar over $500,000 reduces the maximum Section 179 deduction by that dollar (dollar for dollar.)

For example, if the business spent $525,000 ($25,000 over the limit), the deduction maximum for 2007 would be reduced by $25,000. In this example, the business could deduct up to $100,000 of the cost of new equipment for 2007 (instead of $125,000).

How can I Calculate the Section 179 deduction for 2007?
Weve found an excellent 2007 Section 179 Calculator.

Is the qualifying property any different in 2008 than it was in previous years?
The list of qualifying property has not changed in 2008, and most business equipment (as well as certain storage structures) qualifies for the Section 179 expensing allowance. Business vehicles with a gross vehicle weight over 6,000 pounds qualify, but see the Section 179 and business vehicles section for special requirements.

Can I create a loss on my 2007 business tax return with Section 179?
The Section 179 deduction amount is not allowed to reduce taxable income below zero. However, any remaining amount of business equipment purchased in 2007 can still be depreciated using conventional depreciation tables.

What if the equipment was acquired with a Loan or Lease?
A properly structured equipment loan or equipment lease allows your business to take advantage of the expensing allowance afforded by Section 179. All of the above principals and standards apply. Contact your equipment leasing company to verify that your financing meets the requirements. We have additional information regarding Section 179 and Loans/Leases.

Where to get the forms to declare the 2007 Section 179 Tax Deductions?

Free Download of the 2007 version of IRS Form 4562

Free Download of the 2007 Instructions for Form 4562

Section 179.org

This website was designed to answer your questions regarding the Section 179 Deduction, and to explain the impact the Economic Stimulus Act of 2008 (H.R. 5140) has had on Section 179. The information on this site will clearly explain the Section 179 Deduction in plain terms; will go over what property qualifies under Section 179 for the deduction; and will explore the myriad of ways the Section 179 deduction can impact your bottom line. In addition, there are links to IRS forms, and also tools for you to use, like the free Section 179 Deduction calculator.


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Home Section 179 Deduction Stimulus Act of 2008 Property that Qualifies Non Qualifying Property Vehicles & Section 179 Section 179 Calculator Leases & Section 179 Simplifying Section 179 Special Deduction Zones Electing the Deduction Section 179 in 2007 Section 179 FAQ's Contact Us What does the average American pay in annual personal income tax? $0-$1,000 $1,000 - $5,000 $5,000 - $10,000 $10,000-$50,000 more than $50,000 View Results	2007 Section 179 Information This page will help those that filed an extension and still need to prepare a 2007 tax return. I'm preparing my 2007 tax return, what were the Section 179 limits last year? The 2007 Internal Revenue Code Section 179 allows a business the ability to deduct the total cost of qualified tangible property up to $125,000, as long as that business spent less than $500,000 on qualified property in 2007, and the assets were placed in use by December 31, 2007. What if I acquired more than $500,000 in equipment in 2007? If a small business spent over $500,000 on equipment in 2007, each dollar over $500,000 reduces the maximum Section 179 deduction by that dollar (dollar for dollar.) For example, if the business spent $525,000 ($25,000 over the limit), the deduction maximum for 2007 would be reduced by $25,000. In this example, the business could deduct up to $100,000 of the cost of new equipment for 2007 (instead of $125,000). How can I Calculate the Section 179 deduction for 2007? Weve found an excellent 2007 Section 179 Calculator. Is the qualifying property any different in 2008 than it was in previous years? The list of qualifying property has not changed in 2008, and most business equipment (as well as certain storage structures) qualifies for the Section 179 expensing allowance. Business vehicles with a gross vehicle weight over 6,000 pounds qualify, but see the Section 179 and business vehicles section for special requirements. Can I create a loss on my 2007 business tax return with Section 179? The Section 179 deduction amount is not allowed to reduce taxable income below zero. However, any remaining amount of business equipment purchased in 2007 can still be depreciated using conventional depreciation tables. What if the equipment was acquired with a Loan or Lease? A properly structured equipment loan or equipment lease allows your business to take advantage of the expensing allowance afforded by Section 179. All of the above principals and standards apply. Contact your equipment leasing company to verify that your financing meets the requirements. We have additional information regarding Section 179 and Loans/Leases. Where to get the forms to declare the 2007 Section 179 Tax Deductions? Free Download of the 2007 version of IRS Form 4562 Free Download of the 2007 Instructions for Form 4562 Section 179.org This website was designed to answer your questions regarding the Section 179 Deduction, and to explain the impact the Economic Stimulus Act of 2008 (H.R. 5140) has had on Section 179. The information on this site will clearly explain the Section 179 Deduction in plain terms; will go over what property qualifies under Section 179 for the deduction; and will explore the myriad of ways the Section 179 deduction can impact your bottom line. In addition, there are links to IRS forms, and also tools for you to use, like the free Section 179 Deduction calculator.