Article Date:
April 2008

Word Count:



How a Buy-and-Sell Strategy Combined with Section 179 Expensing Can Put Self-Employment Tax Dollars in Your Pocket

Think about this: When you claim a Section 179 expense or a MACRS depreciation deduction on your Schedule C, you reduce your self-employment taxes.


When you sell an asset on which you claimed Section 179 expensing or MACRS depreciation, you do not pay self-employment taxes.


To illustrate, assume this: Your income was going to be $102,000, but you purchased, placed in service, and expensed a $50,000 antique bookcase (the law allows Section 179 expensing of used assets). This expensing reduces your self-employment ... Log in to view full article.

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