UPDATE: New Section 179 Rules Extend Tax Benefits

Posted on Oct 15, 2010 in Jeff Nolte's Blog

In September, President Obama signed into law the Small Business Jobs Act (H.R. 5297) which gives small business owners tax benefits and better access to capital.

The new law includes several changes to Section 179, which outlines how business taxpayers can take deductions on equipment they acquire now or anytime before the end of 2011.

Here are the main changes to the Section 179 tax deduction amounts:

  • Outright deduction increases to $500,000 (up from $250,000) — good through December 31, 2011.
  • Phase out of benefits begins when the cost of equipment exceeds $2 million (up from $800,000) — good through December 31, 2011.
  • 50% bonus depreciation has been extended to December 31, 2010.

The result of taking advantage of Section 179 is that the tax deduction can make the equipment you need now suddenly very affordable. But the equipment must be purchased and put to work before the end of 2011. If you want to take advantage of bonus depreciation, then purchases must be made and put to work before the end of 2010.

Chesapeake can help you take advantage of this opportunity for your business. Contact us today: (800) 787-4848 or jnolte@chesapeaketelephone.com.