A Valuable Tax Deduction--Don't Overlook Internal Revenue Code Section 179 Election to Expense Business Property
The "election" to do so is made with the filing of your tax returns in the year the property was placed in service.
Here are the basics of the deduction:
1) For tax years beginning in 2005, the maximum limit is $105,000. For taxpayers who purchase property in excess of $420,000, the limit is reduced by each excess dollar.
2) Unless the tax code is changed--inflation adjusted limits are likely to reach $110,000 and $115,000 for years beginning in 2006 and 2007.
3) After 2007, curents regulations call for a decrease to an annual limit of $25,000.
Examples of Eligible Property:
-Office Furniture
-Computer
-Printing and copying equipment
-Heavy equipment
-Trucks
-Certain building components
The "SUV" Provisions:
Owners of Sport Utility Vehicles used in business with a loaded vehicle weight in excess of 6,000 lbs--put into use after October 23, 2004 are eligible for up to $25,000 in expensing and allowed depreciation.
Please review your asset acquisition needs and contact us with your questions on this topic.
