Been reading about the Section 179 tax deduction. In all of the examples, it talks about buying equipment for a business and writing it off for the tax year in which it was purchased. I understand that for a business that’s already running, but how does this work for a business that’s not “in business” yet? Can the equipment be purchased during one tax year and written off for the next one?
Here’s the example I’m thinking of. The business is in the planning stages, but you come across a deal on some equipment. It isn’t needed it yet, but it will be when the business is up and running. It gets purchased in 2020, but there is no tax year for the business in 2020. Operations don’t start until 2021. Can that the Section 179 deduction still be used on the equipment for the 2021 tax year?
I know I can talk to a tax professional about this, but thought I’d pose the question here for anyone who might know the answer. Thanks.