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.

Normal Depreciation

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.