Example of Section 179 to clear up any confusion

Section 179 Example

A few people have asked me about an example of how Section 179 works. Here is a simple example, lets say as an owner you were going to show $50,000 in profit at the end of your 2010 Tax year. If your tax bracket is 30% then you would normally pay $15,000 in tax back to the IRS in April, 2011. If you added even 10k in equipment, whether it be computers or a work truck, you would reduce your taxable income to $40,000 and save yourself $3k in tax. Don't buy equipment just to buy equipment, but take a hard look at what may benefit your business and profit from