Can i use Section 179 for large equipment and truck

[Tate Blackmon]

Hello,

I own a home building business and we’re are trying to get more write offs. Currently many large equipment tract loaders, bobcats, Excavtors, etc are offering 0% financing for 5-6 years. Using section 179 would we be able to write off the entire cost of the equipment for 2020. So just say to make things simple tax is 30%, equipment cost $100,000,

Would we be able to write off $100,000, essentially saving 30k in taxes. Also can this be used for trucks as well? Thanks

[Michael Plaks]

@Tate Blackmon

If you buy a $100k machine and deduct it, reducing your taxes by $30k, then you bought a machine for $70k. In other words, you simply bought it at a discount. The point is to not buy anything you would not have bought otherwise. Only if you need it, and you need it now.

Another point is that if you later sell this machine for $40k, you will have $40k taxable income.