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Section 179 allowance for used business equipment

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in Leaders & Managers,Management Training,Small Business Tax,Small Business Tax Deduction Strategies

Q. Our company is purchasing used equipment from one of our suppliers. Can we deduct the full cost under Section 179? C.A.C., Pittsburgh 

A. Yes. The Section 179 deduction applies to used equipment, as well as new equipment, up to the maximum allowance of $250,000 for tax years beginning in 2009. But the deduction is otherwise limited to your taxable income from the business. Plus, the maximum Section 179 deduction for 2009 is reduced on a dollar-for-dollar basis for assets placed in service costing more than $800,000.

Tip: The 50% bonus depreciation deduction is available only for new equipment.

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