We can't get enough...Section 179 - Tax Relief

Section 179 – Tax Relief From Depreciation Rules

“Depreciation.” For business owners, this word is the one most likely to inspire headaches and fits of cussing. The expanded provisions of Section 179 are just the medicine you need to cure the depreciation blues.

Traditionally, if your business property had a life of more than one year, the cost had to be deducted over several tax years. The number of years depended on the characteristics of the property, which made depreciation the flag-bearing example of the complexities of the tax code. Shockingly, the federal government has provided substantial relief to business owners.

Section 179 of the Internal Revenue Code has been dramatically expanded to the benefit of businesses. This code allows businesses to completely deduct the cost of tangible property in the year of purchase. The tax relief comes from the expansion of the total amount that can be deducted in one year.

What Property Qualifies?

You can deduct the cost of the following property under Section 179:

• Machinery and equipment
• Furniture and fixtures
• Computer software.

As shocking as this will sound, the government should be applauded for expanding Section 179. The expansion of Section 179 is a nice piece of tax relief legislation. Let’s hope more is on the way.