Archive for December, 2010

Contractors Can Take Advantage of IRS Section 179 Deduction

December 2nd, 2010  |  Published in Uncategorized

Another year is drawing to a close. Before 2010 is a wrap, have you taken advantage of the Section 179 Deduction as a tax benefit for your business?

Provisions of Internal Revenue Code Section 179 allow businesses to fully expense tangible property in the year it is purchased subject to certain limitations.

As the IRS explains:

A qualifying taxpayer can choose to treat the cost of certain property as an expense and deduct it in the year the property is placed in service instead of depreciating it over several years. This property is frequently referred to as section 179 property.

The Small Business Jobs Act (SBJA) of 2010 increases the section 179 limitations on expensing of depreciable business assets and expands the definition of qualified property to include certain real property for the 2010 and 2011 tax years.

Under SBJA, qualifying businesses can now expense up to $500,000 of section 179 property for tax years beginning in 2010 and 2011. (Without SBJA, the expensing limit for section 179 property would have been $250,000 for 2010 and $25,000 for 2011.)

Follow this link to the IRS web site to learn more about the Depreciation and Section 179 Expense and how you may benefit: http://www.irs.gov/formspubs/article/0,,id=177054,00.html. Please be aware that you should always check with your accountant or tax advisor about how Section 179 may be applicable to your business. Check out Maxwell Systems for construction software.

 

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