Section 179: Last Call for Large CapEx Deductions in 2011

The following is written by Marion K. Jenkins, PhD, FHIMSS, founder and CEO of QSE Technologies.

 

Time is running out on one of the best tax breaks for businesses, especially small/medium businesses: Section 179.

 

Section 179 is a part of the IRS code that allows businesses to accelerate depreciation of qualified capital equipment. Instead of spreading the depreciation out over three, five or more years, Section 179 allows 100 percent of the capital cost to be deducted in one year (more info is here).

 

Currently you can accelerate the depreciation of up to $500,000 of capital equipment purchased and placed into service before Dec. 31 of this year.

 

Starting in Jan. 2012, however, it drops to only $125,000.


What kind of business equipment qualifies? Any tangible equipment for business use, including machinery, office equipment, certain vehicles, and — this is our favorite part — computer equipment and off-the-shelf (not custom) computer software.

 

In other words, tax experts tell us pretty much everything QSE does (other than ongoing tech support) qualifies for Section 179 treatment.

 

To take advantage of the accelerated depreciation, the equipment has to be purchased and put into service prior to Dec. 31 of this year.

 

Marion K. Jenkins, PhD, FHIMSS, is founder and CEO of QSE Technologies, which provides IT consulting and implementation services for ASCs and other medical facilities nationwide. Learn more about QSE Technologies at www.qsetech.com or contact Marion at marion.jenkins@qsetech.com.

 

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