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, you must elect the deduction. The deduction is not automatic. However, it is easy to elect the Section 179 deduction.
When to elect the Section 179 deduction
You elect the deduction when you file your tax return for the year, whether filing timely or under an 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 4562from 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 leased, financed, or purchased 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.
Contact a legal or tax professional. Western Equipment Finance is not responsible for providing tax advice.
