Question

how much can the client deduct on his tax return for the buisness and what items can he deduct?

the equipment is New Commercial HVAC Unit
value of the equipment? 55000

4 – 3D Printers valued at $20,000 per Printer (Purchased from the Dental Supply House)
2 – Panoramic X-Ray Machines valued at $25,000 per machine (Purchased from Dentists R Us)
5 – Used Dental Chairs $1,000 per chair (Purchased from Richard’s brother)

Business Income Total was $170,000.

2. 179 tax code what are the requirements for immediate expensing and what is the limits?

Answer 1

1) given,

business total income - $1,70,000.

value of equipment - $55,000.

   3d printer value - $20,000

   panaronic x ray machine - $25,000

used dental chair -$1000.

what items he can deduct.

* as per section 179 of the IRS tax code allow businesses to deduct purchase of 3d printer, dental chair, panaronic x ray machine and equipment.

the business can deduct.

equipment - $55,000

3d printer -$20,000

x ray machine - $25,000

dental chair - $1000

$1,01,000

the business can deduct $1,01,000 from business income of $1,70,000

business income- $1,70,000

less:-

deductions    ($1,01,000)

   $69,000.

$69,000 is the tax amount for the business.

2)what are requirements for immediate expensing and what is the limits as per 179 tax code.

as per 179 tax code of irs (internal revenue code) their are deductions for business for buying the business property and using them. two general requirements for section 179 of business property are-

1) property must be tangible, depriciated, personal property which is put to use for business purpose.

2) property should be used for the business and must put in service in the year in which it claim deductions.

following are business property purchases which can be deducted from business income-

machinery and equipment, business vehicles, business personal property, listed property, cost of improvements.

ANNUAL LIMIT ON SECTION 179 DEDUCTIONS ARE AS FOLLOWS-

FOR 2020, the maximum deductions for an individual assets ( new or used equipments purchased) is $10,40,000.

with total of $25,90,000.

   sports utility vehicle limit - $25,900