IRS Section 179 Tax Allowance:
The Economic Stimulus Act of 2008 increased first-year write-offs of equipment from $128,000 up to $250,000 for 2008. Section 179 allows businesses to take a deduction for the cost of qualifying equipment & certain software purchases immediately,instead of depreciating it over a period of several years. The amount of qualifying purchases that may be placed in service after December 31,200* instead to $800,000 in 2008. this represents the maximum amount a doctor can purchase each year, before he or she begins to lose the ability to claim this deduction. The allowable deduction will revert back to $25,000 beginning in 2011.
Under the IRS depreciation rules (MACRS, 5-year life,200% declining balance), 20% of the cost of equipment may be deducted the first year the equipment is placed in service.
How Does It Work??
Any equipment you purchase will have an immediate tax write off up to $250,000 the first year.
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