Section 179 Deduction Provides Tax Savings on Equipment Purchases in 2015
Date Posted: 12/16/2015
Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment and/or software purchased or financed during the tax year. The cap for the total amount that can be written off in 2015 is $25,000, *** UPDATED to $500,000*** . Note - the equipment must be used for business purposes more than 50% of the time and put into use between January 1, 2015 and December 31, 2015 to qualify for the Section 179 Deduction.
What property qualifies for Section 179?
Equipment (machines, etc) purchased for business use including shipping, production, & packaging equipment
Tangible personal property used in business
Business Vehicles with a gross vehicle weight in excess of 6,000 lbs
Property attached to your building that is not a structural component of the building (i.e.: a printing press, large manufacturing tools and equipment)
Partial Business Use (equipment that is purchased for business use and personal use: generally, your deduction will be based on the percentage of time you use the equipment for business purposes).
To learn more about Section 179 Deduction for 2015 visit https://www.irs.gov/publications/p946/ch02.html