Code Sec. 179 Small Business Expensing – 2018 and forward

The American Taxpayer Relief Act extends through 2013 enhanced Code Sec. 179 small business expensing. The Code Sec. 179 dollar limit for tax years is $1,000,000 with a $2 million investment limit. The rule allowing off the shelf computer software is also extended.

Example:
Purchase a $200,000 machine
$200,000 Sec. 179 expense
$42,000 Potential income tax savings (based on a 21% tax bracket)
Section 179 expensing may be used for New and used equipment