Tax Law (Questions About Taxes)/Section 179


I am the sole proprietor of an llc.  (Architect).   I would like to by two laptops, one for graphic presentations and one for 3-D rendering.  Would this be a red flag for getting audited under section 179?
Also, if I need to close my business in the next year do to lack of work, is there a penalty for claiming the computers the previous year?

Thank you


Thanks for your question.

Taking a Sec 179 deduction for the computers should not raise a red flag.  However, if you close the business next year, you will have to do a recapture of the Sec 179 depreciation taken, based on the remaining life expectancy of the computers.  Computers are classified as 5-year MACRS property, so if you close the business after a year, you would have to recapture 80% of the Sec 179 deduction as income.

Hope this helps.

John Stancil, CPA

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John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

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