Section 179
Barron's Business Dictionary:
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Section 179
Tax law provision permitting a certain amount of depreciable business personal property purchased each year to be expensed rather than depreciated. The limit of depreciation is $108,000 in 2006, adjusted for inflation in 2007, then falling to $25,000 per year in 2008, without an inflation adjustment.
The investment limit to claim this is $430,000 in 2006, adjusted for inflation in 2007, then falling to $200,000 per year in 2008 without an inflation adjustment. The amount is phased out, dollar for dollar, when purchases exceed $200,000 in a year. The expense deduction is limited to the net income the taxpayer earns from the active conduct of all trades or businesses during the year.
The investment limit to claim this is $430,000 in 2006, adjusted for inflation in 2007, then falling to $200,000 per year in 2008 without an inflation adjustment. The amount is phased out, dollar for dollar, when purchases exceed $200,000 in a year. The expense deduction is limited to the net income the taxpayer earns from the active conduct of all trades or businesses during the year.
| Addendum, Add-On Interest, Ad Valorem | |
| Additional Mark-On, Adequacy of Coverage, Adhesion Contract |
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Section 179
Investopedia Financial Dictionary:
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Section 179
An immediate expense deduction that business owners can take for purchases of depreciable business equipment instead of capitalizing and depreciating the asset. The Section 179 expensing method is offered as an incentive for small business owners to grow their businesses with the purchase of new equipment.
Investopedia Says:
The Section 179 expense deduction is limited to such items as cars, office equipment, business machinery and computers. This speedy deduction can provide substantial tax relief for business owners who are purchasing startup equipment - even costing hundreds of thousands of dollars. For example, in the 2007 tax year, the Section 179 expense can provide a deduction of at least $125,000, or $225,000 for equipment that is used inside the Gulf Opportunity Zone, and at least $3,060 for vehicles.
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Barron's Business Dictionary
Dictionary of Business Terms. Copyright © 2007 by Barron's Educational Series, Inc. All rights reserved.
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