This Apple ad has been bugging me all day. What $1000 tax deduction are they talking about? Why $1000? Section 179 of the Internal Revenue Code allows taxpayers to expense 100% of the cost of new assets purchased for use in the taxpayer's business? There's no $1000 limit to this deduction. However, there are other limitations. For example, the Section 179 deduction can't create a tax loss. Plus, the IRS classifies computers as listed property, so tax deductions are limited to the percentage of business use. If you use your computer partly for business and partly for personal use, only the business percentage may be claimed as a tax deduction. I wish I could figure out exactly what Apple was talking about in this ad. Any ideas?
4 comments:
Wishing you and yours a very Merry Christmas and a Happy New Year
Great question. I thought I was the only one wondering what they were talking about.
I'll be interested in any follow ups you get.
Talked with Apple's Small Business group. They know about Sec. 179 deductions. They weren't able to address the referenced $1,000 limit not being relevant. Did the advertising department embellish a bit?
Anonymous,
I think they did the opposite of embellish. I think they understated the tax deduction for buying a new Mac for business. That's why I don't get it.
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