tabbyapple
Junior Member
I've been filling out Section V for many years and depreciating various groups of equipment using a 5 year recovery period under 200DB. This section is pretty easy as basically the only thing that changes is the % depreciated for each separate group of items on the two 4562 forms I typically use each year.
This year I would like to classify my newest group of equipment under Section 179 under Part 1 of the 4562. The total cost of this group of equipment is $2743.50 so I am wanting to write this entire amount off under Section 179. This new group consists of moveable steal shelving, a drill press, and misc. tools.
I find the IRS instructions to be utterly worthless in how to address this - I frankly don't understand what they want entered at all all in Section 179 under Part 1.
1. Do I initially place this new group under Part V - leaving column (h) blank, writing in the full $ amount in column (i), and then transferring the total from line 29 to line 7 in Part?
OR
Do I totally ignore Part V and place all the information in Part 1 since there will be no regular depreciation?
2. Part 1: Line 1 - What do they mean by "Maximum Amount"?
Is this suppose to be the maximum allowed under the tax laws (which I've seen stated as $25,000 or $500,000 for 2014)?
3. Part 1: Line 2 - Would be $2743.50 correct?
4. Part 1: Line 3 - What is the Threshold Cost? Is that the $200,000 maximum capitol purchases that I've seen stated on tax advice sites?
This year I would like to classify my newest group of equipment under Section 179 under Part 1 of the 4562. The total cost of this group of equipment is $2743.50 so I am wanting to write this entire amount off under Section 179. This new group consists of moveable steal shelving, a drill press, and misc. tools.
I find the IRS instructions to be utterly worthless in how to address this - I frankly don't understand what they want entered at all all in Section 179 under Part 1.
1. Do I initially place this new group under Part V - leaving column (h) blank, writing in the full $ amount in column (i), and then transferring the total from line 29 to line 7 in Part?
OR
Do I totally ignore Part V and place all the information in Part 1 since there will be no regular depreciation?
2. Part 1: Line 1 - What do they mean by "Maximum Amount"?
Is this suppose to be the maximum allowed under the tax laws (which I've seen stated as $25,000 or $500,000 for 2014)?
3. Part 1: Line 2 - Would be $2743.50 correct?
4. Part 1: Line 3 - What is the Threshold Cost? Is that the $200,000 maximum capitol purchases that I've seen stated on tax advice sites?
