Section 179 Deduction
3DVision Technologies wants to alert you to important 4th quarter tax planning implications – to take advantage of by the end of this month.
What is Section 179?Essentially, Section 179 of the IRS tax code allows businesses to deduct the full purchase of qualifying equipment and/or software purchased of financed during the 2011 tax year. That means if you buy (or lease) a piece of qualifying equipment, you can deduct the full purchase price from your gross income.
What Software Qualifies?
For basic eligibility, software must meet all the following general specifications:
– The software must be financed or purchased outright.
– The software must be used in your business or income-producing activity.
– The software must have a determinable useful life.
– The software must be expected to last more than one year.
Section 179 does come with limits – there are caps to the total amount written off. For more specific details visit www.section179.org
The bottom line is, if you are thinking of purchasing software, now is a great time to take advantage of the tax benefits.