Final answer:
Section 179 allows businesses to deduct the full cost of qualifying assets in the year they are acquired rather than depreciating the assets over several years, providing a tax advantage for businesses with low income.
Step-by-step explanation:
If a taxpayer has a new business with little income, it may be beneficial for the taxpayer to elect to use Section 179 to avoid bothering with depreciation. Section 179 allows businesses to deduct the full cost of qualifying assets in the year they are acquired rather than depreciating the assets over several years. This can provide a significant tax advantage, especially for businesses with low income. By electing to use Section 179, the taxpayer can deduct the cost of qualifying assets, such as equipment or vehicles, up to a certain limit. This can help offset the income generated by the new business and reduce the taxpayer's overall tax liability. However, it's important to note that the taxpayer should carefully consider their specific financial situation and consult with a tax professional before making any decisions.