Section 179 Federal Income Tax Deduction

2009 Tax Incentive
The American Recovery and Reinvestment Act of 2009 extends the $250,000 Code Section 179 increased expensing limit, that was in effect for 2008.  It now runs through 2009 and does apply to used machinery.  Similar to 2008, the deduction is reduced to the extent the cost of qualifying property placed in service during the taxable year exceeds $800,000.

The Section 179 limit for 1st year expense in 2009 is now $250,000 - Almost double that of 2007!

What this could mean for your business:
Instead of depreciating a newly acquired asset over several years, the Section 179 Expense allows a business to take a current year deduction of the full purchase amount up to $250,000 for assets under $800,000.  This benefit begins to decline after total new asset acquistion tops $800,000.  The amount you can deduct decreases by $1 for every dollar spent above $800,000.

With these temporary tax incentives, you should seriously consider acquiring captial you may need soon to maximize savings.

Section 179
http://www.section179.org/

Download the Section 179 pdf
http://www.mdna.org/images/File/files/2009%20Tax%20Incentive.pdf