|
Equipment & Section 179
Businesses who acquire equipment including machinery, computers, and other tangible goods in a single tax year would qualify for the Section 179 deduction. Because businesses are continually adding or replacing equipment in order to maintain efficiencies and increase their viability the Section 179 deduction is a great resource.
Most tangible assets qualify for the Section 179 deduction. The equipment must be put acquired and put into use during the same calendar year as the election between January 1, 2009 and December 31, 2010.
Qualifying Equipment:
- Equipment such as machinery purchased for business use
- Tangible personal property used in business
- Computers
- Computer Software
- Office Furniture
- Office Equipment
- Assets attached to your building that are not a structural component of the building (such as a conveyor line, large manufacturing system, production equipment, storage racking, assembly systems and other similar capital equipment)
- Partial Business Use (equipment that is purchased for both business use and personal use - your deduction will be calculated by figuring the percentage of time you use the equipment for business purposes.)
Non-Qualifying Assets
Although most equipment types can qualify, it is better to be safe than sorry. Contact the IRS or a certified tax advisor / CPA to help determine if your equipment qualifies. |
Although most business equipment (almost any asset that is not real estate) will qualify for the Section 179 deduction, there are some types of equipment that will not. If you are ever unsure of what may or may not qualify it would be best to contact the IRS helpline (1-800-829-4933) or your local CPA / tax preparer.
Please take note that this list is a general overview and your equipment or property may have its own specific set of qualifications. Always make sure that your asset fulfills the legal requirements to qualify for the deduction.
Non-Qualifying Assets:
- Real Property, such as land, buildings, permanent structures, paved parking lots, fences, and components of permanent structures, like improvements.
- Air conditioning and heating equipment
- Property used outside the United States
- Property that is used to furnish lodging
- Property acquired by gift/inheritance or purchased from related parties
- Property that is not considered to be personal property
To make sure that your asset qualifies, refer to the IRS's Publication 946.
Act Now!
To take advantage of the incentives and the substantial tax savings, your business equipment must be put in use by year-end. Please contact your tax advisor to learn about the specific impact to your business.
If you need advice on how to utilize Section 179 for your business, feel free to contact us at 800-604-4817 or advice@economicstimulusinfo.com.
|
HOME | ABOUT | NEWS | INFO | RESOURCES | FAQ | CONTACT
Be sure to always talk to your accountant because every business has unique situations.
The information and content provided is for informational purposes only.
This information is provided as a convenience to you, and First Star Capital
makes no
warranties and
bears no liability for your use of this information.
Economic Stimulus is a subdivision of First Star Capital. |
