Are you aware that The Small Business Jobs Act (SBJA) of 2010 may allow you to expense up to $500,000 of section 179 property during the 2010 and 2011 tax year?
The year end is a great time for you to review your IT to see whether or not you have the right equipment in place for your business. Have you been waiting to upgrade your server? Improve or expand the way you are backing up and restoring your data? Or possibly get a new telephone system that can interface with your server, PCs and wireless capabilities? The SBJA increased limit for expensing new purchases may help you get what you need.
Call Tom Witt @ 718-261-1353 to schedule a complimentary IT assessment or to find out how to maximize the impact your equipment has on your business – increasing productivity with IT is one of the easiest ways to build up business’ bottom line and the SBJA may help you along the way.
The Small Business Job Act (SBJA) and Section 179 Deduction
Depreciation and Section 179 Expense
A qualifying taxpayer can choose to treat the cost of certain property as an expense and deduct it in the year the property is placed in service instead of depreciating it over several years. This property is frequently referred to as section 179 property.
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This month is a great time for you to assess whether or not you have the right IT in place for your business, and the SBJA increased limit for expensing new purchases may help you get what you need*. |
The Small Business Jobs Act (SBJA) of 2010 increases the IRC section 179 limitations on expensing of depreciable business assets and expands the definition of qualified property to include certain real property for the 2010 and 2011 tax years.
Under SBJA, qualifying businesses can now expense up to $500,000 of section 179 property for tax years beginning in 2010 and 2011. Without SBJA, the expensing limit for section 179 property would have been $250,000 for 2010 and $25,000 for 2011.
The $500,000 amount provided under the new law is reduced, but not below zero, if the cost of all section 179 property placed in service by the taxpayer during the tax year exceeds $2,000,000.
The definition of qualified section 179 property will include qualified leasehold improvement property, qualified restaurant property, and qualified retail improvement property for tax years beginning in 2010 and 2011.
SBJA also removes cellular telephones and similar telecommunications equipment from the definition of listed property for tax years beginning in 2010.
Depreciation limits on business vehicles. The total depreciation deduction (including the section 179 expense deduction) you can take for a passenger automobile (that is not a truck or a van) you use in your business and first placed in service in 2010 is increased to $3,060. The maximum deduction you can take for a truck or van you use in your business and first placed in service in 2010 is increased to $3,160.
Caution:. These limits are reduced if the business use of the vehicle is less than 100%.
For more information, click on http://www.irs.gov/formspubs/article/0,,id=177054,00.html
