Section 179 deductions

Could someone please help me to better understand Section 179 deductions?
From what I understand, I can elect to deduct any portion or all of the expense of a business asset at one time rather than depreciate it over its
expected lifetime. Am I also correct that I can only do this on an asset that I purchased outright but not if I have an outstanding debt on.
For example, I purchase a used truck for my business with a bank loan for $15000. I also purchase a trailer outright with company funds for $2500. I must be depreciated the truck over its useful life but the trailer I can deduct the entire $2500 purchase price during the year that I purchased it and not depreciate it.
Have I understood this correctly or am I missing something. If so, please inform!
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Correct, subject to limitations of business income and a dollar cap.

Nope. You can take Section 179 deductions on property purchased and placed in service during the year (ie: in December) yet the first payment has not been made, or that payment will be made over 5 years (or more).

Both the truck and the trailer can qualify for Section 179. Check the vehicle though to see if the SUV and/or luxury vehicle limits apply.

Nope, see above.
--
Paul A. Thomas, CPA
Athens, Georgia
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