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2010 Section 179 Information

This page will help those that filed an extension and still need to prepare a 2010 tax return.

I'm preparing my 2010 tax return, what were the Section 179 limits last year?

The 2010 amended Internal Revenue Code Section 179 allows a business the ability to deduct the total cost of qualified tangible property up to $500,000, as long as that business spent less than $2 million on qualified property in 2010, and the assets were placed in use by December 31, 2010.

What if I acquired more than $2 million in equipment in 2010?

If a small business spent over $2,000,000 on equipment in 2010, each dollar over $2,000,000 reduces the maximum Section 179 deduction by that dollar (dollar for dollar).

For example, if the business spent $2,025,000 ($25,000 over the limit), the deduction maximum for 2010 would be reduced by $25,000. In this example, the business could deduct up to $475,000 of the cost of new equipment for 2010 (instead of $500,000).

How can I Calculate the Section 179 deduction for 2010?

Here's an excellent 2010 Section 179 Calculator.

Is the qualifying property any different in 2010 than it was in previous years?

The list of qualifying property has not changed in 2010, and most business equipment (as well as certain storage structures) qualifies for the Section 179 expensing allowance. Business vehicles with a gross vehicle weight over 6,000 pounds qualify, but see the Section 179 and business vehicles section for special requirements.

Can I create a loss on my 2010 business tax return with Section 179?

The Section 179 deduction amount is not allowed to reduce taxable income below zero. However, any remaining amount of business equipment purchased in 2010 can still elect Bonus Depreciation or be depreciated using conventional depreciation tables.  1st year Bonus Depreciation is limited to 50% for assets acquired before Sep 8, 2010, and 100% after Sep 8, 2010. 

What if the equipment was acquired with a Loan or Lease?

A properly structured equipment loan or equipment lease allows your business to take advantage of the expensing allowance afforded by Section 179. All of the above principals and standards apply. Contact your equipment leasing company or Crest Capital to verify that your financing meets the requirements. We have additional information regarding Section 179 and Loans/Leases.

Where to get the forms to declare the 2010 Section 179 Tax Deductions?

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This website was designed to answer your questions regarding the Section 179 Tax Deduction, and to explain the impact the various Stimulus Acts have had on Section 179. The information on this site will clearly explain the Section 179 Deduction in plain terms; will go over what property qualifies under Section 179 for the deduction; and will explore the myriad of ways the Section 179 deduction can impact your bottom line. In addition, there are IRS tax forms and also tools for you to use, such as the free Section 179 Deduction Calculator currently updated for the 2016 tax year.