IRS Section 179 Deduction: How to Find Out if You Qualify

If you are a commercial building owner and have yet to hear about IRS Section 179 Deduction then it is important that you have a basic understanding of what this means and how it may benefit you. With IRS Section 179 Deduction you may be able to cover a great deal of your commercial property costs put towards making your building more energy efficient. However, you first need to have a better understanding of how the process works and who qualifies for these deductions.

First in order to get a IRS Section 179 Deduction you must be certain that you have a taxable income that is at least the same amount as the expense associated with your potential deduction. You either have the choice of filing your expense as an expense under Section 179 or to depreciate; you can not do both. When it comes to getting your IRS Section 179 Deduction you must be able to prove that you use the item for business purposes more than 50% o the time it is being used. If you are using this energy efficient expense not entirely for business purposes you should keep in mind that you can only claim the percentage of the purchase price based on the amount you use it.

For example, if you bought a new energy efficient appliance for your commercial property but your property is used as your business 60% of the time and your home 40% of the time, you can only write off 60% of the purchase price of this item. You will also want to keep in mind that IRS Section 179 Deductions do not apply to real estate, inventory, property purchased directly from a relative, heating and air conditioning units or items you already had the previous year and are now starting to use for business purposes.

All of the rules and regulations that govern IRS Section 179 Deductions can be complex and hard to follow. This is why in addition to speaking to your CPA or accountant, you will want to make sure that you turn to a professional company that specializes in commercial tax deduction inspections and professional certifications. They will be able to help explain IRS Section 179 Deductions to you and help you get started with the legal paperwork that you will need to file in order to get the most from your deduction. With the help of the right local company you may be on your way to greater deductions than you ever thought possible.

Walker Reid specializes in building tax deduction certifications under the IRS Section 179 Deduction. This company is a licensed engineering firm that is dedicated to helping commercial building owners of all types to get the inspections and guidance they need. Visit them online at website today for more.

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