An IRS provision allowing immediate expensing of qualifying business equipment purchases.
Section 179 allows businesses to deduct the full purchase price of qualifying equipment and software in the year it's purchased, rather than depreciating it over several years. For 2024, the limit is $1,160,000 with a phase-out starting at $2,890,000 in total equipment purchases.
Tangible personal property like computers, equipment, furniture, and vehicles (with limits). Software and certain improvements also qualify.
Section 179 provides immediate tax benefits, which is usually better if you have enough income to offset. Lower income years might benefit from spreading deductions via depreciation.
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