In order to take advantage of the Section 179 Deduction for equipment put into service during the current calendar year for which you are filing taxes, the deduction is NOT automatic. Your company must elect the deduction. However, it is easy to elect the Section 179 deduction.
When to Elect the Section 179 Deduction Your business elects the deduction when you file your tax return for the year, whether filing timely or under an allowable extension.
How to Elect the Section 179 Deduction To elect to take the Section 179 Deduction, simply fill out Part 1 of IRS Form 4562 and attach it to your tax return like you would any other additional form, such as a "Schedule C".
Download IRS Form 4562 from www.IRS.gov
Download instructions for IRS Form 4562 from www.IRS.gov
You may want to have your tax advisor complete this form for you.
Additional Information You do not have to take the Section 179 Deduction on all equipment acquired during the year. It is on an item by item basis.
You may claim Section 179 deductions up to the due date (including extensions) for filing your taxes for the tax year you are claiming the deduction. You are not allowed to claim Section 179 for previous tax years.
Important Notation You must keep complete records of the business equipment you financed, leased, or purcahased during the year, including where you acquired the equipment from and the date the equipment was acquired and placed into service. Equipment must be placed into service during the calendar year for which the deduction is being claimed, and will fall under the guidelines of the rules as of that period of time.
ProLease Capital Solutions, LLC does not provide tax advice. Consult your tax advisor.
