Francetic Tax Resolution - July 2020


Do you own a property used by a business or trade, or do you have a business entity that does? If so, you could potentially save thousands of dollars of taxes upfront by taking the Section 179 deduction on your tax return.


With this deduction, a taxpayer can elect to recover all or part of the cost of a qualifying property used in a trade or business, up to a certain limit. If you own the property yourself, you simply deduct the cost in the year it was placed in service by claiming the Section 179 deduction. The total amount you can deduct under Section 179 is subject to a maximum dollar limit ($1,020,000 for 2019), investment limit ($2,550,000 for 2019), and business income limit (this involves a calculation). This is an alternative to recovering the cost by taking depreciation deductions over a period of years. Thanks to the new tax laws that went into effect in 2018, the Section 179 deduction can also be used to fully deduct the cost of “improvements” to a property owned by a business or trade. These improvements can include a new roof; heating, ventilation, and air conditioning (HVAC); fire protection and alarm systems; and security systems. Before 2018, such improvements had to depreciate over their useful lives — typically 20 years or more. One caveat to electing the Section 179 deduction for property improvements is that rental activities aren’t eligible unless the rental activity is leasing the property to a corporation for business purposes. If you’re renting a single or multifamily home or apartment building to tenants, that won’t qualify for the Section 179 deduction. Instead, any improvements will have to depreciate over a period of several years. There are a few other limitations as well. For example, you must have purchased the new or used property you’re deducting and not received it as a gift. Some properties excluded from the deduction include barns, bridges, buildings and their structural components, elevators and escalators, fences, investment property, land and land improvements, paved parking areas, and properties purchased from a related party. If you think the Section 179 deduction might be helpful for you or someone you know, or if you have questions about how to use it to reduce your tax obligations, I’m here to help. You can reach out to me at any time for a consultation.

Inspired by

Contrary to popular belief, vegetables are delicious. Most of our parents just didn’t know how to prepare them well. This summer, revolutionize your cookout with a serving of delicious, colorful veggies.


• • • • •

1 tsp salt

onion, red bell peppers, baby carrots, and yellow squash are great on the grill)

1/4 tsp pepper

1 1/2 tsp dried Italian seasoning

1 1/2 tsp garlic, minced

• • •

5 tbsp olive oil

2 lbs assorted vegetables, trimmed and halved (asparagus, mushrooms, red

2 tbsp lemon juice

1/4 cup parsley leaves, chopped


1. In a small bowl, combine salt, pepper, Italian seasoning, and garlic. 2. Brush vegetables with olive oil and place in a large bowl. Top with lemon juice and seasoning mixture. Toss to coat evenly. Cover and refrigerate for at least 20 minutes but no longer than 2 hours. 3. Prepare the grill at medium-high heat. 4. Grill vegetables in batches, cooking 3–5 minutes on each side until browned and tender. (Carrots will cook longer, 6–9 minutes per side.) 5. Remove from the grill, sprinkle with parsley, and serve hot.



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