Putting the Section 179 tax deduction to work for your operation

Section 179 of the IRS tax code allows businesses to deduct, from their gross income, the purchase of qualifying equipment and/or software that was acquired (purchased, leased or financed) during a given tax year. The United States government created this incentive to encourage businesses to invest in themselves by purchasing new equipment.

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You need to know

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The benefits of Section 179 apply to general business equipment and commercial off-the-shelf (COTS) software. In other words, if you use a machine or application in your normal course of business, it may qualify for the deduction.

 

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Simply acquire the equipment or software, complete the appropriate IRS form, and submit it according to the stated instructions.

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To qualify for the deduction, the equipment or software must have been acquired and placed in service by or before midnight on December 31 of the year in which you are claiming the deduction.
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Legislation, changes in tax law, and other governmental acts can affect Section 179. To stay abreast of the most current guidelines, visit the Section 179 website on a regular basis.

*This notice contains statements regarding general tax principles that may not be specific to your tax situation. Such statements are not intended as tax advice for the recipient or any other person. Please seek tax advice based on your own particular circumstances from your independent tax advisor to discuss whether you would benefit from this change in law prior to making any decisions.