Section 179 is a method that allows businesses to expense certain assets when they are purchased instead of writing off depreciation over a number of years.
For a tax year beginning in 2012, the Code Sec. 179 expensing election is reduced to $139,000, with a $560,000 investment-based ceiling (down from $500,000/$2 million). For tax years beginning after 2012, it will be further reduced to $25,000 with a $200,000 investment-based ceiling (assuming no Congressional action later this year). Additionally for a tax year beginning after 2011, expensing can no longer be claimed for qualified real property.
If you have any questions regaridng the implication of Section 179 expensing on your business, please do not hesitate to contact us.