The tax code is designed to help businesses of all sizes, but there is some confusion about what breaks are available for business equipment financing. One of the more popular ones is the Section 179 deduction that may make more sense for corporations planning on buying certain types of depreciable assets. While many C-level executives are likely aware of straight-line deductions and the Modified Accelerated Cost Recovery System, the Section 179 deduction can save even more money.
2014 Section 179 Basics and Benefits
Congress has not made up its mind regarding what businesses should be able to deduct pursuant to Section 179 of the IRS tax code, but at the bare minimum, owners and purchasing officers should be able to take an immediate deduction of up to $25,000 on qualified capital purchases. Qualified purchases can include heavier machinery and manufacturing tooling as well as computers and others. The chief benefit is that there is no worry about having to calculate depreciation tables.