Anyone purchase new property in 2019 taking advantage of sec 179

[Susan O.]

https://www.kbkg.com/news/kbkg-tax-insight-tax-reform-changes-to-qualified-improvement-property

Anyone who purchase a new building this year not they should do this

Anyone do it in 2018?

MORE:

Starting in 2018, there is a $1 million limit on the total amount of business property expenses you can deduct each year using Section 179. This dollar limit applies to all your businesses together, not to each business you own and run. You do not have to claim the full amount. It’s up to you to decide how much of the cost of property you want to deduct. But you don’t lose out on the remainder; you can depreciate any cost you do not deduct under Section 179.

If you purchase more than one item of Section 179 property during the year, you can divide the deduction among all the items in any way, as long as the total deduction is not more than the Section 179 limit. It’s usually best to apply Section 179 to property that has the longest useful life and therefore the longest depreciation period. This reduces the total time you have to wait to get your deductions.

[Ashish Acharya]

Originally posted by @Susan O.:

https://www.kbkg.com/news/kbkg-tax-insight-tax-reform-changes-to-qualified-improvement-property

Anyone who purchase a new building this year not they should do this

Anyone do it in 2018?

MORE:

Starting in 2018, there is a $1 million limit on the total amount of business property expenses you can deduct each year using Section 179. This dollar limit applies to all your businesses together, not to each business you own and run. You do not have to claim the full amount. It’s up to you to decide how much of the cost of property you want to deduct. But you don’t lose out on the remainder; you can depreciate any cost you do not deduct under Section 179.

If you purchase more than one item of Section 179 property during the year, you can divide the deduction among all the items in any way, as long as the total deduction is not more than the Section 179 limit. It’s usually best to apply Section 179 to property that has the longest useful life and therefore the longest depreciation period. This reduces the total time you have to wait to get your deductions.

You cannot take section 179 on a actual the real property. 

Yes, we have seen people take this all the time. 

Most people opt for bonus depreciation rather than section 179 as sec 179 is more restrictive for most people. 

But you also have to consider your state tax implication. What I have seen is most states follow bonus depreciation but not Section 179. So if you take section 179 there will be no addback to your income when you calculate your state taxes. However if you take bonus depreciation, You would have to add back the depreciation you took because the state will not allow that deduction.

For a small taxpayer, right now on bonus and section 179 gives us similar benefit. That is 100% expense of the qualified property. Under both rules you cannot expense the entire real property.