A note, not advice

Buying equipment before December 31: what has to be true

Buying something your business truly needs before Dec 31 lowers your taxes now. The tax savings are a percentage of the cost, not dollar-for-dollar. It works best for a purchase the business would make anyway, such as pulling a January purchase into December.

Three facts usually decide whether the conversation is even worth having:

• The item is qualifying property, used more than half for the business.
• It is placed in service by December 31: delivered, set up, and ready to use. Ordering it is not enough.
• Section 179 is limited by business income. Bonus depreciation can create a loss, and that is a different question.

Vehicles are harder than a workbench. Passenger-auto dollar caps were left for a CPA on the draft rules sheet, so YEWO does not pretend to know them. An SUV has its own cap in the draft parameters.

Wisconsin may not follow federal bonus depreciation. The app says so on the strategy card and does not estimate a Wisconsin dollar savings. Ask a CPA which method belongs on the state return.

This is a list of questions for your CPA. Start the year-end check if you want those questions written down for your own CPA.