IRS Section 179 Lease Question | Print4Pay Hotel

Art PostAdmin VIP

I somewhat understand Section 179. However is the deduction for a $1.00 purchase lease the lease price of the equipment or the full cost of the lease?

for example: 10,000 lease cost, but the total payout is $13,000

2/6/189:36 AM

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Old GloryMaven VIP

I have always assumed that interest could not be included in a Section 179 claim but I went to our accountant who used to be an auditor and she said that same thing… Interest deductions go into a different bucket so to speak.

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Art PostAdmin VIP

TY for this

Kevin CluneSenior P4P'er

The purchase price is immediately deductible up to $1,000,000 per year. In the example the deductible amount is $10,000, not $13,000.

This works on $1 buyout leases and not on "true" or "operating" leases where there is no ownership at the end of the lease.

2/13/1811:46 AM

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