Question: Now that you understand Section 179 expensing, let's put you in the role of a tax advisor. The Scenario: Your client Sarah is buying $180,000
Now that you understand Section 179 expensing, let's put you in the role of a tax advisor.
The Scenario: Your client Sarah is buying $180,000 in office equipment for her consulting business. Her taxable income this year is $95,000, but she expects it to jump to $250,000 next year and keep growing.
Your Task: Should Sarah take the full Section 179 deduction this year, or would a different timing strategy be better for her situation?
What to Include:
Your recommendation (take it all now, spread it out, or use bonus depreciation instead). One key reason supporting your choice. Brief calculation showing the tax benefit of your approach. Think like a tax professional considering both current and future income levels!
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