Essentially, Section 179 works like this:
When a business buys certain items of equipment, like a copier or printer(s) it typically gets to write them off during a (5) year depreciation period.
In other words, if you spend $50,000 on a new machine, you get to write off (say) $10,000 a year 20% for (5) years. Now, while it’s true that this is better than no write off at all, most business owners would really prefer to write off the entire equipment purchase price for the year they buy it.
In fact, if a business could write off the entire amount, they might add more equipment this year instead of waiting. That’s the whole purpose behind Section 179… to motivate the American economy (and you) to move in a positive direction – buying a new MFP or new laser printer.
For most small businesses SMB (adding total equipment and software totaling less than $500,000 in 2011), the entire cost can be written-off on the 2011 tax return. Understanding Section 179 For large businesses adding even more than $500,000, the write-offs are just as substantial.
So if you want to buy or lease new equipment soon call us and we’ll help you take the 179 deduction this year!