Free Money…Small Business Jobs & Credit Act of 2010
I’ve said it before and I’ll say it again …FREE MONEY! The Small Business Jobs & Credit Act of 2010 provides business owners additional tax deduction and depreciation opportunities through December 31, 2010. The deduction for qualified equipment has recently been increased to $500,000. Equipment must be placed in service by December 31, 2010, but the deduction may apply to equipment ordered in 2009.
- The deduction begins to phase-out dollar for dollar after $2 million purchased during 2010.
- Equipment acquisitions totaling $2.5 million or more do not result in any Section 179 deduction.
- A 50% bonus depreciation deduction is included in the Act plus the normal accelerated depreciation on the balance of the cost applies to qualified new equipment acquired and placed in service during 2010.
- $1 buyout leases and EFAs qualify for Section 179 benefits.
Qualified equipment under Section 179 includes:
• Equipment (machines, etc.) purchased for business use
• Tangible personal property used in business
• Business vehicles with a gross vehicle weight in excess of 6,000 lbs
• Computers and computer software (off the shelf)
• Property attached to the business building that is not a structural component of the building
For additional information, please visit www.irs.gov or contact the IRS helpline at 800-829-4933.