Section 179 Tax Savings

An extension of The Small Business Jobs & Credit Act of 2010 provides key tax incentives for investments in new business equipment. This legislation gives business owners additional tax deduction and depreciation opportunities through December 31, 2012.

Tax benefits extended: what they mean to your business

The Tax Code Section 179 deduction for qualified equipment has recently been extended and increased to $500,000. This means businesses can write off up to $500,000 of qualified equipment within the 2010 and 2011 tax years.  The Act includes:

• A 100% bonus depreciation deduction plus the normal accelerated depreciation on the balance of the cost. This benefit applies to qualified new equipment acquired and placed in service after September 8, 2010 and before  January 1, 2012.

• A 50% first year additional bonus depreciation deduction for investments placed in service after December 31, 2011 and through December 31, 2012.

 

Qualified equipment under Section 179 includes:

• Equipment (machines, etc.) purchased for business use.

• Tangible personal property used in business

• Computers and computer software (off the shelf)

• Property attached to the business building that is not a structural component of the building

 

 Download Section 179 Information

For additional information, please visit ww.irs.gov