Do you know about Section 179, if not you should
If you’re buying or plan to buy any new technology for your company you should know the details. Under Section 179, businesses that spend less than $800,000 a year on qualified equipment may write-off up to $250,000 in 2010. The rules are designed for small companies, so the $250,000 deduction phases out when a business purchases more than $800,000 in one year. (Companies cannot write off more than their taxable income).
Business owners who acquire equipment for their business: machinery, computers, and other tangible goods, usually prefer to deduct the cost in a single tax year, rather than a little at a time over a number of years. This deduction is known by its section in the tax code, a Section 179 deduction. So don’t put off that equipment purchase till next year, who knows when the government will take this benefit away from businesses. You can find out more about the tax code at https://www.section179.org/section_179_deduction/.
-Jennifer Smith, PEI
