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Depreciation Options for Small Business Owners | Tax Tip of the Week | No. 79 February 9, 2011

Posted by bradstreetblogger in : Section 168, Tax Tip, Taxes, Uncategorized , trackback

There were a lot of last minute changes made in the tax code regarding how you can deduct capital assets you purchased.  Rather than depreciating business property over several years, these optional methods allow you to expense certain property in the year placed in service.

Section 179

This optional method of accelerating depreciation allowances has been in the tax code for years.  However, the limits have changed many times.  Here are the current rules:

Section 168

This is sometimes called “Bonus Depreciation” and is relatively new.  It can be used in conjunction with a Section 179 election or in lieu of a Section 179 election.  The latest rules are:

Confused?  This is only the summary—we can’t wait to tell you all the details!  You will definitely want to call us if contemplating these deductions.

You can contact us in Dayton at 937-436-3133 and in Xenia at 937-372-3504.  Or visit our website.

Rick Prewitt – the guy behind TTW

…until next week.

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