TAX SAVINGS – USE “SECTION 179”

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The IRS has a section of the code that allows you to take a deduction for the purchase of business equipment, all in one year, instead of spreading it out over many years in “depreciation”.  As the name implies, the section of the IRS code is #179.

Normally when you buy equipment (computers, printers, cell phones, etc) you take an incremental depreciation expense over the life of that specific item – anywhere from 3 to 30 years.

Under Section 179, you get to deduct the depreciation all in one year up to $25,000 (under the current code).  So if you buy a computer before December 31st, you get to take the entire purchase price as a deduction!

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