Question

When a taxpayer buys a new vehicle for business use you should __________. Encourage them to take both the Section 179 deduction and bonus depreciation to benefit on this year's tax return. Explain to them that bonus depreciation is automatically calculated because they should take it. Discourage them from taking a Section 179 deduction because it is rarely beneficial. Discuss how Section 179 and bonus depreciation will effect this year's tax return, as well as future years, and let them decide what is best for them.

Answer 1

The correct answer is Discuss how Section 179 and bonus depreciation will effect this year's tax return, as well as future years, and let them decide what is best for them.

The best way to help a person is to clarify a situation, in this context, the best option is to explain the variables and let the person decide what is best for them, because we cannot decide what is best for someone else.