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Pros And Cons Of Deductions

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Last but not the least, although §179 immediate expensing and bonus depreciation appear to be beneficial to Patriot, those favorable tax treatments can change in future years depending on the Congress. Chances are high that §179 deduction will be limited to a smaller amount and bonus depreciation will be excluded for future years. Therefore it is rather crucial for Patriot to change existing accounting method to maximize deductions and to avoid any risks of potentially getting examined by the IRS. To begin with, Patriot should develop a formal written accounting manual covering the treatment for acquiring tangible properties before January 1, 2015 so Patriot can utilize the safe harbor rule for 2015 if needed. Second of all, the company should

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