Experts Warn: Small Business Taxes Miss $1M Section 179 Credit

Over 12% of startups lose a $1 million tax break by misfiling Section 179. The deduction is limited to the cost of qualified business property placed in service during the tax year and to the taxpayer's taxable income. Common pitfalls include misclassifying assets, omitting the election on Form 4562, or filing the deduction after the year ends. To preserve the credit, verify that each asset meets the qualified business property criteria, keep detailed purchase records, and file the election in the correct tax year. Proper documentation and timely filing can keep the credit intact and extend your runway.

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