Capitalize Savings on your Deductions with IRS 197

Section 179 of the U.S. internal revenue code is an expense deduction that allows business owners to take for their purchases. Depreciated business equipment is a business asset that is typically deducted over a period of time. Section 179 allows businesses to deduct the full cost of capital assets, purchased or financed, right away rather than deprecating them over its useful life. The full amount of the purchase price is eligible for the deduction.

The equipment must me tangible. This can include machinery, software, furniture or other items needed to run the business. It does not apply for copyrights or patents. Land and buildings also do not qualify, however the building’s equipment does. The equipment must be used for more than 50% in your business operations and cannot be acquired by a relative.

Use our built in calculator to find out what you can save on your business’ next major purchase!