Equipment deductions

4 ways to trigger more Section 179 savings

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in Small Business Tax,Small Business Tax Deduction Strategies

The bonus-depreciation deduction was great while it lasted, but it's gone for 2005. Still, you can generate top-dollar deductions this year when buying equipment and other business assets. That's because your not-so-secret weapon—the Section 179 expensing allowance—lets you write off most or all of the cost of most business assets in the very first year of ownership! Here's the lowdown on the rules and four ways to maximize your deductions.
 

How expensing works
 

Under Section 179 of the tax code, you can elect to instantly deduct, or "expense," the cost of qualified business assets bought and placed in service during the year, up to a certain limit. Two years ago, the maximum allowance was quadrupled from $25,000 to $100,000. Subsequent inflation adjustments have pushed the limit even higher. For
2005, the maximum allowance is set at $105,000.
 

You can take the Section 179 write-off for tangible business asse...(register to read more)

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