Section 179

Section 179 allows business owners to take an immediate tax deduction for the cost of tangible depreciable personal property, rather than depreciating these assets over an extended period of time. By doing so, a business owner can defer the payment of income taxes until a later period. The intent behind allowing this election is for businesses to make larger investments in certain types of fixed assets. The types of fixed assets to which the Section 179 deduction apply include the following:

  • Business machinery and equipment
  • Computers
  • Office equipment
  • Livestock
  • Vehicles

The deduction can be taken in the year in which an asset is put into service.

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Corporate Tax Planning