Section 179 – (Expensing equipment purchases)

For tax purposes only, (referred to as Section 179) you are allowed to expense (you don’t have to depreciate) some equipment purchases. For 2009, the Act continues the increased Section 179 limits to $250,000 for the allowable deduction and to $800,000 for the qualifying property limit.  Therefore, you will be able to expense equipment purchases of up to $250,000 in 2009, as long as the total of these purchases to not exceed $800,000,  Leasehold improvements and Buildings DO NOT qualify for this deduction.  Passenger vehicles DO NOT qualify, other than as noted below in Business Vehicles.

Also note – This deduction can’t be used to create or add to a net loss