If you are a small or medium-sized business owner who has purchased, financed or leased equipment in 2013 and placed it into service during the calendar year, then you need to elect to take the Section 179 Deduction to ensure that your business captures the available tax savings (it is not automatic - you must elect to take it).

Fortunately, electing to take the 179 Deduction is very easy:

You elect to take the deduction when you file your tax return for the year, whether you are filing on time or received an extension.

To elect to take the Section 179 Deduction, simply fill out Part 1 of IRS form 4562, available for free below, and attach it to your tax return (much like any other additional form, such as a "Schedule C" or similar).

Download IRS form 4562 for tax year 2012 (2013 not in circulation yet).

Download instructions for IRS form 4562 for tax year 2011.

If you do not feel comfortable completing the form yourself, your tax preparer can easily take care of form 4562 for you. Your tax preparer may also be able to advise you of additional Section 179 Deduction and Bonus Depreciation savings that may be available to you.

As we mentioned previously, most equipment as well as off-the-shelf software that you purchase, finance or lease for business-use is going to qualify for the Section 179 Deduction. You can verify whether or not the business equipment that you have purchased or leased qualifies for the Section 179 Deduction by reviewing our list of qualifying property, software, and equipment.

The Section 179 is taken on an item by item basis, and you do not have to use it on all eligible property bought during the year if you do not wish to do so.

You may claim Section 179 deductions up to the due date (including extensions) for filing your taxes for the tax year you are claiming the deduction. Initially you were not allowed to claim Section 179 for previous tax years - however, under Rev. Proc. 2008-54 you are now able to amend and elect Section 179 if you previously did not for tax years beginning after 2007 and through currently 2013.

You must keep complete records of the business equipment you leased or purchased during the year, including where you acquired the equipment from and the date the equipment was acquired and placed into service. If filing for 2011, the equipment must have been leased or purchased and placed into service between January 1, 2011 and December 31, 2011.