How small business owners can profit from Section 179

Update on Stimulus Program for Small Business Owners

What is Section 179?

The Section 179 deduction is a tax deduction that enables business owners to deduct up to $2,000,000 in equipment to help offset their taxable income. The allowance lets you take a 100% write off on the first $500,000 in equipment added and a 50% write off for any amount over $500,000 up to the $2,000,000 limit. These limits were increased as part of the 2010 Small Business Jobs Act to help spur investment in the economy and allow business owners flexibility to grow their business. This provision allows owners to accelerate their tax write off and take accelerated depreciation in the first year instead of over a 3-7 year timeframe