If you’ve been thinking of purchasing new hardware and software or upgrading your current technology, now is the time. Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying hardware and software purchased or financed during the tax year.
Per Section 179 of the tax code, the amount businesses can write off in 2011 has doubled since 2010. Business can now deduct up to $500,000 – this includes most new and used capital equipment, and also includes certain software and leased equipment. Rather than depreciate equipment purchases over time, Section 179 allows business to write off the full amount. That adds up to some huge deductions for small and mid-size businesses.
Section 179 at a glance:
- 2011 Deduction Limit – $500,000 (up from $250k previously). Good on new and used equipment, including new software and leased equipment
- 2011 Limit on equipment purchases – $2 Million (up from $800k previously).
- “Bonus Depreciation” increased to 100% on qualified assets.
- Businesses must put the equipment into service between January 1, 2011 and December 31, 2011 to qualify.
Today, Section 179 is one of the few incentives contained in any of the recent Stimulus Bills that actually helps small business. Although large businesses also benefit from Section 179 or Bonus Depreciation, the original target of this legislation was much needed tax relief for Small Business – and millions of small businesses are actually taking action and getting real benefit.
You can get more details about Section 179 here. Or contact ACE IT Solutions and we can guide you through the process and leverage our partner relationships to help you procure the right equipment to meet your needs and budget. Act now. This incentive ends in less than two months.