|
The HIRE Act of 2010 extends increased Section 179 expensing for small business equipment purchases made in 2010.
The boost to $250,000 in Section 179 expensing is extended for new and used equipment purchases made and placed into service in 2010. The amount will decrease to
$125,000 in 2011. In addition, the cap on how much equipment can be purchased to enjoy the write-off remains at $800,000 in 2010. In 2011, that amount drops to $500,000.
Section 179 Boost for Small Businesses
Under the one-year extension, small businesses (whose total equipment purchases in 2010 do not exceed $800,000) can expense the first $250,000 for the
2010 tax year.
|
| OLD LAW (pre-2008 change and 2009/2010 extensions) - $400,000 on New or Used Systems |
| Section 179 Deduction | = $128,000 |
| PLUS 14% regular depreciation on remaining property basis ($272,000) | = $38,080 |
| TOTAL First-year Deduction | = $166,080 |
| 2010 LAW - $400,000 New or Used Systems |
| Section 179 Deduction | = $250,000 |
| PLUS 14% depreciation on remaining 1st year basis of property ($150,000) | = $21,000 |
| Total 2010 Deduction on $400,000 New or Used Systems | = $271,000 |
|
