Section 179 Deduction: Death, Retirement and Disability

What tax effect would death, retirement, or disability have on you or your business? Here’s an easy example to illustrate.
Let’s say that in 2017, you purchased for business use a pickup truck with a gross vehicle weight rating greater than 6,000 pounds. Asserting that you use the pickup 100 percent for business, you expensed the entire $55,000 cost.
What happens to that $55,000 expensed amount if you die, retire, or become disabled before the end of the vehicle’s five-year depreciation period?

Death
​
Consider these three factors:

• Will your heirs pay estate taxes, your death? 
• How will Section 179 apply?
• What is the value of that pick up truck?

​Disability

This is not sweet. If you become disabled there are circumstances that will require you to pay taxes on prior year deprecation.

The method the IRS requires to recapture those funds makes matters even worse.

 You need a plan to protect you against  the IRS. 

​Retirement
 
With retirement, you have exactly the same problem as you would have if you were to become disabled. 

​Takeaways
 
You need to consider what happens should you become disabled, or retire, or die.
 
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