business tax information
There has never been a better time than 2008 to invest in your business and supplement your growth. The expensing allowance under Tax Code Section 179 encourages capital spending and allows you to deduct more depreciation than under the usual rules. In fact, the first year’s tax savings could exceed the first year’s payments on the equipment!
The Basics of the Section 179 Deduction
Under Section 179, businesses that spend less than $500,000 a year on qualified equipment can write off up to $125,000 in 2007. The rules are designed for small businesses; so, the $125,000 deduction begins to phase out if you purchase more than $500,000 in one year. Also, companies cannot write off more than their taxable income.
Filed under: Miscellaneous
