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From Section179.org: NEWS ALERT: Feb 25, 2011 Two congressional acts affecting Section 179 in a positive way for this 2011 tax year passed in late 2010 (The Tax Relief Act of 2010 and The Jobs Act of 2010). The newest changes are as follows: The Section 179 Deduction limit was increased to $500,000. The total amount of equipment that can be purchased was increased to $2 million. This includes most new and used capital equipment, and also includes software. The “Bonus Depreciation” was increased to 100% on qualified assets. However, this can be taken on new equipment only. When applying these provisions, Section 179 is generally taken first, followed by Bonus Depreciation – unless the business has no taxable profit in 2011. Section 179 was designed with businesses in mind. That's why almost all types of "business equipment" qualify for the Section 179 deduction. All businesses need equipment on an ongoing basis, be it machinery, computers, software, office furniture, vehicles, or other tangible goods. It's very likely that your business has purchased many of these goods during the past year, and will do so again and again. Section 179 is designed to make purchasing that equipment during this calendar year financially attractive. Material goods that generally qualify for the Section 179 Deduction Please keep in mind that to qualify for the Section 179 Deduction, the below equipment must be purchased and put into use between January 1, 2011 and December 31, 2011. * Equipment (machines, etc) purchased for business use
* Tangible personal property used in business
* Business Vehicles with a gross vehicle weight in excess of 6,000 lbs (Section 179 Vehicle Deductions)
* Computers
* Computer Software ( "Off-the-Shelf" Software)
* Office Furniture
* Office Equipment
* Property attached to your building that is not a structural component of the building (i.e.: a printing press, large manufacturing tools and equipment)
* Partial Business Use (equipment that is purchased for business use and personal use - generally, your deduction will be based on the percentage of time you use the equipment for business purposes.) Please remember to consult your tax advisor for complete information regarding your circumstances.
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