Section 179 Revisited

Small Business Jobs and Credit Act of 2010 extends and enhances Section 179 expensing.

On September 27, 2010, President Obama signed the Small Business Jobs and Credit Act of 2010 into law. It will provide billions of dollars to entrepreneurs and small business owners in lending support, tax cuts, and other opportunities to drive economic recovery. For 2010 and 2011, the Act increased the Section 179 write-offs regarding depreciation expenses from $250,000 to $500,000. Prior to the bill’s passage, the expensing limit would have decreased from $250,000 in 2010 to $25,000 in 2011. The level of investment at which the write-offs phase out was also raised to $2 million. In addition, SBA 2010 will allow taxpayers to expense up to $250,000 of the cost of qualified leasehold improvement property.

To find out who and what qualifies for Section 179, read “You and IRS Section 179” by Bruce Bryen, CPA, at www.dentalaegis.com.