Case 1-8 Section 179 Deduction for Equipment Purchases Section-179 of the IRS tax code allows qualifying busiorses to deduct the ftll cost of "eligible jroperty" on their iscome taxes as an expease, rather than roguirize the cost of abe propetty to be eapitalized and depreciated over its useful life. The provision aas adopted into law to belp businesses For 2020 , the dedoction limit was $1,040,000 and applies to bew and osed equipment, as well as off rethe-shelf sotmare. The rules sate that the deduction san eely be takea If the equipment was financed or purchased and pit into service between Jamary 1. 2020, assd December 31 . 2020. The code says a butinera has to be profitable to bee the deduction, and is needs to elect it it's not automatic. The business cannot dechict more than its business izcome for she yeac. Was puretabed on Decenber 10, 2020 asd pie into service ou Jankary 4,2021 the year wal 5120,000 , the dedocting woold all bat wipe out taxable income. Eoenidered herself to be an ethical persoa and lavew what was being alked of her mas wring Questions