IRS Section 179
IRS Section 179
As part of The Economic Stimulus Act of 2008, H.R. 5140 makes changes to IRS Section 179 to provide certain key tax benefits for businesses. Breaking down the tax code, you’ll find that IRS Section 179 allows commercial entities to expense the entire purchase price of qualifying equipment, in the tax year the equipment was acquired. Under the old guidelines, businesses were allowed an immediate deduction of up to $128,000 for total equipment acquisitions up to $500,000. The Economic Stimulus Act of 2008 increased the maximum deduction amount up to $250,000 for equipment acquisitions up to $800k.
The Economic Stimulus Act also provided an additional bonus to encourage businesses to purchase Featured in The capital equipment in 2008… 50% special bonus depreciation for property placed in service during 2008. For example, if a $475,000 piece of manufacturing equipment (used equipment is ok) is purchased/leased before the end of 2008, $250k of the cost can be immediately expensed under IRS Section 179. The additional $225k is subject to the 50% special depreciation allowance.
What Equipment Qualifies Under IRS Section 179?
Generally, almost any type of equipment, machinery, or gear used by a business qualifies under IRS Section 179. Equipment must be purchased (leased/financed) between January 1, 2008 and December 31, 2008 and put in use during that same time. Qualified equipment under Section 179 includes:
- Equipment, machinery & gear purchased for business use
- Business vehicles w/ GVW more than 6,000 Lbs
- Computers and off-the-shelf software (No Custom Software)
- Office equipment, furniture, and leasehold improvements
- Energy saving equipment/ alternative energy equipment
WB Financial finances equipment acquisitions across nearly every industry and have seen the following equipment qualify under Section 179:
- Digital SLR Cameras for Professional Photographers
- Camcorders for Freelance Cameramen and Videographers
- Post-production Computer Equipment
- LED Lighting
- Construction Equipment
- Medical Equipment
- Printing Presses & Woodworking Equipment
- Industrial Equipment, Machine Tools & more!
Businesses wishing to take full advantage of the special provisions of the Economic Stimulus Act of 2008 MUST ACT NOW!! Contact WB FINANCIAL today to see how affordable our equipment financing and equipment leasing programs can be. Get the equipment your business needs to grow and take advantage of special year-end equipment financing offers from WB Financial… your equipment leasing specialists!