How do Section 179 Deductions Work?
Only certain items are eligible for section 179 deductions. Most equipment, vehicles, computers, and furniture are eligible for a section 179 deduction. Buildings, property, and intangibles are not eligible for a section 179 deduction. Business owners should also be aware that while the section 179 deduction gives a larger deduction for the year it is used, that depreciation cannot be used in the following years. document.getElementById(‘adsense_placeholder_2’).innerHTML = document.getElementById(‘adsense_ad_2_hidden’).innerHTML; According to the IRS, the maximum amount that any small business could deduct using a section 179 deduction was $108,000 in 2006 and all equipment must have been put into service the same year the business wants to use a section 179 deduction for it. The IRS also restricts the total dollar amount of equipment the company can have put into service for the year the deduction is taken ($430,000 for 2006) which reinforces the idea that this is a deduction intended
