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![]() American Recovery and Reinvestment Act of 2009 has officially extended the Section 179 Deduction increases made available in the Economic Stimulus Act of 2008 through December 31, 2009
Economic Stimulus Act of 2008 and Section 179 In order to address concerns regarding a slowing economy, President Bush asked Congress to come up with an Economic Stimulus Plan that would benefit both consumers and businesses, and Congress responded with a comprehensive economic stimulus package. On February 13, 2008, President Bush signed H.R. 5140, otherwise known as the Economic Stimulus Act of 2008. The Economic Stimulus Act immediately grabbed headlines because most Americans would receive a check for $600 from Uncle Sam. While the Economic Stimulus Act was a boon for consumers, there were significant benefits in the Economic Stimulus Act for businesses as well. In fact, Small Business benefited a great deal from the Economic Stimulus Act of 2008. This is because the Section 179 Deduction limits were generously increased, and small businesses across the country reaped the rewards. How your business will benefit from the Economic Stimulus Act of 2008
Bonus Deduction Another change that the Economic Stimulus Act of 2008 brought to Section 179 is it offers a one-time “bonus first year depreciation” of 50% on qualifying equipment. This is after the above deduction limit is reached.
In other words, if you buy enough equipment to exceed the $250,000 deduction, you can take a “bonus” 50% depreciation on the rest – this is in addition to normal depreciation (Section 179 deduction chart). Most small and medium-size businesses will find these new dollar limits generous indeed. The Economic Stimulus Act helped consumers, and it will also continue to significantly help most small businesses as well by lowering the cost of equipment that they need to purchase or lease to run their day-to-day operations. To see how much you can save in 2009, use this Section 179 tax calculator. As of this writing, the American Recovery and Reinvestment Act of 2009 has extended the one-year increase through the end of 2009. Unless it is extended, the Section 179 Deduction phases out completely in 2010, so if you want to take advantage of the higher limits, you need to act before the end of this year.
Section 179.org This website was designed to answer your questions regarding the Section 179 Deduction, and to explain the impact the Economic Stimulus Act of 2008 (H.R. 5140) as well as the American Recovery and reinvestment Act of 2009 has 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 forms, and also tools for you to use, like the free Section 179 Deduction calculator. Section 179 Org | Disclaimer | Copyright © 2008-2009 |
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