Frequently Asked Questions
Many have questions about the American Recovery and Reinvestment Act of 2009 and the possibilities of Section 179 deductions. We have taken the time to answer common questions about these topics.
How will the stimulus package affect my business?
What is Section 179?
How can I apply for Section 179?
Do I have to use Section 179?
How do I know if I qualify for the Section 179 deduction?
> How will the stimulus package affect my business?
The American Recovery and Reinvestment Act may actually bring more demand for your industry. Because the stimulus plan has certain goals, like making medical record electronic or reducing diesel fuel emissions, you may directly benefit from the economic plan. Otherwise, the Act extends Section 179 to help your business invest in equipment.
> What is Section 179?
Section 179 is an IRS tax code that allows businesses to deduct the full price of qualifying equipment from their gross income. It was created to encourage businesses to invest in growth. Most types of equipment, such as many types of vehicles, machinery, computer software, and office furniture, can be written off.
> How can I apply for Section 179?
The IRS makes the process simple. First, you must purchase or lease the equipment you need. Then fill out the Section 179 IRS form. For more information, visit the IRS's web site, www.IRS.gov.
> Do I have to use Section 179?
No; Section 179 is not mandatory. However, it may be very beneficial to your business.
> How do I know if I qualify for the Section 179 deduction?
Most equipment and vehicles apply for the Section 179 deduction. For a list of qualifying and non-qualifying equipment, please visit our Equipment and Section 179 page. For a list of qualifying and non-qualifying vehicles, please visit our Vehicles and Section 179 page.
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