Section 179 limits for the year 2012 were increased by the 'Jobs Act of 2010' which allows businesses to write-off up to $139,000 of qualified capital expenditures subject to a dollar-for-dollar phase-out once these expenditures exceed $560,000 in the 2012 tax year.
Bonus Depreciation was also increased to 50% by the 'Tax Relief Act of 2010' which allows larger businesses that exceed the $560,000 cap to write-off 50% of qualified assets using first year Bonus Depreciation. Also, small businesses that are not profitable in 2012 can use 50% Bonus Depreciation (on new equipment only) and carry-forward the loss to future profitable years.
This should mean a substantial boost to your bottom line this year. But, to get the deduction for tax year 2012, you have to act this year, as once the clock strikes midnight on December 31, 2012; Section 179 can't increase your 2012 profits anymore.
