What is section 179 of the IRS code?

Essentially, Section 179 of the IRS tax code allows businesses to deduct the full
purchase price of qualifying equipment purchased or financed during the tax year. That
means that if you buy (or lease) a piece of qualifying equipment, you can deduct the full
purchase amount from your gross income. When businesses are looking for those extra
deductions, why not upgrade your technology and save money at the same time? The
following things are available to deduct under this plan.

• Equipment (machines, etc) purchased for business use
• Phone Systems
• Tangible personal property used in business
• Business Vehicles with a gross vehicle weight in excess of 6,000 lbs (Section 179
vehicle deductions)
• Computers
• Computer Software ( "off-the-shelf" software)
• Office Furniture
• Office Equipment
• Property attached to your building that is not a structural component of the building
(i.e.: a printing press, large manufacturing tools and equipment)
Partial Business Use (equipment that is purchased for business use and personal use -
generally, your deduction will be based on the percentage of time you use the
equipment for business purposes.)

Taking full advantage of section 179 is a way to upgrade technology and save tax
dollars. In addition, remember my blog last week that talked about savings with SIP! Its
November, but there is still time to implement a solution that will allow you to benefit
greatly from enhanced or new technology with a major savings.