It is nearing the end of the calendar year and that old machine has been staring you in the face all year slowing down your staff and being a pain. You really want to use it to create your own version of the printer scene from the movie Office Space. Unfortunately, that new piece of equipment you want and need just isn't in the budget until at least the first quarter of 2016. If only you could buy it NOW!
Perhaps it makes sense to do just that. Section 179 of the tax code was designed as a stimulus for businesses to invest in equipment by allowing them to deduct a substantial part of equipment purchases in the first year instead of depreciating it over time. As it stands now, businesses will be able to deduct up to $25,000 of qualifying equipment. Qualifying purchases include computer equipment and off-the-shelf software. This does not mean you should buy things you don't need. But if you plan on purchasing something in the first part of next year, why not take the tax break in 2015?
The IRS has detailed information in their publication which can be accessed by clicking here.
Section179.org is a free resource that will answer your questions about the Section179 Tax Deduction and explain, in easy to understand language, the impact various Stimulus Acts have on Section 179. Click here to access their web site.