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Section 179
| ℹ️ Section 179 Deduction, as of 1/1/2016, will be permanent at the $500,000 level. Businesses exceeding $2 million in qualifying purchases have the Section 179 deduction phase out dollar-for-dollar and are completely eliminated above $2.5 million. Consult your tax accountant. |
| ℹ️ 50% Bonus Depreciation - Businesses of all sizes will be able to depreciate 50 percent of the cost of qualified purchases acquired and put in service during 2015, 2016, and 2017. Then, bonus depreciation will phase down to 40 percent in 2018 and 30 percent in 2019. |
How to Get There
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Elite - Left Menu > Tools > Database Management > Section 179
Field Definitions and Process
Purchase Year – From the drop-down menu, you can select the current or previous year.
Capitalized Items Only – Checking the box will only list inventory items marked as capitalized; un-checking will show both capitalized and non-capitalized items.
Serialized Items Only – Checking the box will only list serialized inventory items
Total Depreciation - Allows you to add additional or bonus depreciation to an individual item or to all items. Please note that the total amount allowed for the Section 179 deduction is $500,000. If your equipment value is less than $500,000, the total value will be fully allocated.
Auto Allocation - When selected will take the amount listed in the total depreciation and allocate it to the highest dollar value first, then break up the amount among the lower dollar values.
Ex. If allocating $50.00 bonus depreciation, it will first try to allocate to the highest dollar value of $50.00 instead of 10 items at $ 5.00.
Include – When the button is selected, the amount entered in the total depreciation will be allocated to all items. Unchecked will allow you to manually select the inventory item you want to allocate the
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Key – Key of the inventory item
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Name – Name of the inventory item
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Category – Category based on a category listed in file maintenance, item record.
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Quantity – Quantity owned
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Date – Date item was purchased.
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Price – Purchase price of the inventory item.
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Current Extra Depreciation – This will list any extra depreciation associated with the inventory item or items.
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Include – Checking the box will select all inventory items and list their purchase value under the allocated and remaining balance. If less than $500,000 the total amount can be depreciated. Un-checking the box will allow you to manually select the inventory item for depreciation or to allocate extra depreciation.
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New Extra Depreciation – This will list any new or extra depreciation allocated to the inventory item or items.
Clear Changes – This will allow you to clear your changes.
Save– Allows you to save your changes made in the module.
Finalize – Will finalize any changes made within the section 179 Depreciation module.
Once Finalized is clicked the items will be allocated with Section 179 Depreciation you have entered,
Then you are prompted to recompute depreciation either at a specific date or recomputed all historical history depreciation.
In the Item Record, it will show as fully depreciated