How to handle 179 Deductions

[Former Member]

Hi Gurus,

Please let me know what are 179 deductions and how to handle 179 deductions during conversion of fixed assets from legacy system.If possible please explain me with an example.

Greatly appreciated for all the help..

[Former Member]

Hi Gurus,

This relates to the US tax laws section 179 which states "Section 179 of the United States Internal Revenue Code (26 U.S.C. § 179), allows businesses to elect to deduct the cost of certain types of property on their income taxes, as an expense (rather than requiring the property to be capitalized and depreciated). This property is generally limited to tangible personal property such as equipment and vehicles"

Please let us know how this can be configured in SAP.

Thanks in advance,

Krishnakanth CG