What you need to know NOW about Section 179

by Larry Emmott on December 2, 2010

in Management

Section 179 is not where the government hides crashed alien space ships. It is a provision of the tax act I have mentioned before. The DentistryIQ article linked below explains it well. The botom line is that if you are planning to make a big technology purchase do it now and you will have a huge tax savings.

Section 179 of the IRS tax code allows businesses to deduct the full purchase price of qualifying equipment purchased or financed during the tax year. That means that if you buy (or lease) a piece of qualifying equipment, you can deduct the FULL PURCHASE PRICE from your gross income. It’s an incentive created by the U.S. Government to encourage businesses to buy equipment and invest in themselves.”

via What you need to know NOW about Section 179 – DentistryIQ.

UPDATE: Got this from Rick Willeford CPA who knows a whole lot more about it than I do.

“Lease” does not count. Property must be Owned and In Service by 12/31. 

  You might add “the rest of the story”:  Many (if not MOST) times, a CPA will recommend NOT taking the election since the doc may not have enough taxable income to take full advantage of the deduction, or it may be more prudent to “not eat dessert first”, but purposely spread out the deduction to better match the timing of loan repayment. Also, if incorporated, the deduction may not be available on the doc’s personal tax return. So “don’t try this at home” without talking to a good dental CPA. 

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