Of the new tax breaks is one regarding Section 179 that focuses on IT spending. Chandler Kinsey of Ryan Capital helped me get a better understanding of just what the benefits are for business owners. He writes…
Randy – In easier terms, the Section 179 is a write off for small businesses who make IT or any capital purchases up to 500K. The business owner can place equipment for their business and deduct the entire expense in one year. They can then use the lease to cash flow the purchase rather than pay cash.
Here are the bullet points:
1) For the business owner, Section 179 is now a 500K deduction limit for capital purchases. This is a very robust deduction for small business
2) The Bonus Depreciation is above and beyond the Section 179 for more capital intensive companies as they evaluate their IT spending requirements.
3) The customer can lease/finance and conserve cash flow while taking advantage of this deduction. This may encourage new hires or increases in inventory for increased demand.
- New Small Business Legislation Benefits Both Businesses and Individuals (turbotax.intuit.com)
- Business Stimulus: Fully Deduct Equipment Purchases (turbotax.intuit.com)
- Depreciation of Business Assets (turbotax.intuit.com)
- How Businesses are Benefiting from New 2010 Tax Provisions (prweb.com)