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Contributor
Posts: 18
Registered: ‎05-15-2010
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That is a tax planning/structuring/control problem,.........

........... and has little to do with the use of the deductions, etc.

 

 

The allowability of Section 179 is no better/no worse than the earned income credit, granting favorable breaks to oil companies and airlines, etc etc.

 

It is not the govt's job---------at least it should not be, regardless of what the current Administration deems its role to be-----------to oversee whether or not someone uses depr to cut their taxes, as compared to good, solid, long term tax structuring, wherein depr merely becomes one tool.

 

So, if someone writes off a big amount this year, and is in tax problems the next years when they suddenly need to sell, etc the underlying equipment, so be it.  Lots of ways to have gotten around the sudden taxes related to that low basis equipment.