Legal Question in Tax Law in Illinois

tax forms and 179 deduction

I have a rental business and I report all activities on schedule E.

I purchased a truck this year to use 100% for my rental business.

I want to take the 179 deduction for part of the cost and the rest to be depreciated over a 10 yr period.

I know I must file a form 4562 but do I also have to file a schedule C?

Im a little confused over this and any help would be welcomed.

Also how much can i take on the 179 deduction for the truck? It is over 6000 lbs.

Thanks


Asked on 2/12/07, 7:04 am

1 Answer from Attorneys
Cyndi Perez Trostin

Re: tax forms and 179 deduction

If you file a Schedule E, you will be able to report the depreciation on that Schedule, accompanied by the 4562.

The Section 179 expense is limited by the amount of income the business receives during the tax year, and other limitations, but can be carried forward to future years if it is not all used in the first year. The remaining amount of the value of the asset is then depreciated over the applicable period. The instructions for form 4562 should give you most of the answers you need for your questions. The instructions are available for download at www.irs.gov.

It sounds like you might want to consult with an accountant to get some assistance with your business taxes as they become more complex.

Good luck to you.

Read more
Answered on 2/12/07, 1:27 pm


Related Questions & Answers

More Tax and Taxation Law questions and answers in Illinois