Section 179 - $250,000 Expensing Allowance

2008 Tax Benefits! Business owners who acquire equipment or qualified software for their business usually prefer to deduct the cost in a single tax year, rather than a little at a time over a number of years. This accelerated deduction is known by its section in the tax code: the Section 179 Expensing Allowance. A new 2008 law increases the amount of qualified property that a business can expense under Section 179 to $250,000. This incentive is for equipment and qualified software placed in service between December 31, 2007 and January 1, 2009 and is designed for small companies, so the deduction phases out when a business purchases more than $800,000 in one year. The increase does not extend to 2009. In 2009 it goes back to $128,000.